Doesn't it make sense for Sprint to buyout clwr and reduce the costs. Sprint plans to overbuild CLWR. CLWR has unnecessary retail locations and marketing and executives. Sprint is launching LTE...so is CLWR. doesn't it make more sense to just do it once? not twice?
Also, I'm not sure if it makes sense for CLWR to make these deals with MVNOs, who are all low end MVNOs....more competition for Sprint in the end. no? and the wholesale arpu is so low. If there is wholesale, it seems to make more sense for Sprint to do it. If anything, it's cheaper to have one organization, rather than a duplication at CLWR.
Everything about this CLWR-S relationship is perplexing. Overall, I think Hesse is incompetent for allowing this structure.
$8 billion offered to Pcs. $2 billion more secured three days later. A couple hundred million from LS2. What did they receive from for changing their minds and signing off on Dish's venture? (terms including finacial not disclosed)
I thought it would be great to be bought out by Apple given the conversations once held. But with a government auction coming to try and provide relief to the spectrum crunch, now may be a good time to sell and let Sprint worry about any declining value over the next few years. Guarantee the cable co's were licking their chops and willing to help Sprint take Clwr over. They sold their spectrum but not their shares but McCaw is ahead of that game.
Man, $5 billion is what McCaw spent to get the licenses and was given three decades to pay it off. May Sprint pay their @$$es off for all of their troubles they caused and McCaw can payoff his investment two decades early!
Heres the thing, clwr management have A LOT of skin in the game. If sprint takes over, then clwr wants full value for it.
They will not allow sprint to just buy out for cheap because clwr believes there will soon be business value to clwr. Look at stantons business history.
Sprint now uses about 15 to 20 percent of clwrs capacity. Why should clwr sell cheap if they beleive the other 85 percent of capacity will soon be in demand?
Clwr took the sprint deal because they needed the funding. Otherwise they would not have accepted such a low deal. This is where hesse screwed up, instead of creating a win win, he decided to trash both companies. But bod of sprint is now in control. As i suggested before, shareholders should have sued sprint.
See how sprint stock zoomed up after hesse news? They should fire him and bring in stanton. Stock for both companies would double.