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Clearwire Corporation (CLWRD) Message Board

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  • wayne.vanscoyoc wayne.vanscoyoc Nov 16, 2012 4:16 PM Flag

    Why SB acquire CW shares?

    Control doesn't equal ownership. Without 100% ownership there will be network management problems. Also Access to Spectrum isn't free. S pays $550M a year to CLWR for access even though S owns half the spectrum. It would $1.1 BILLION a year if they owned none of CLWR. Demand is going up and the amount Sb and S have to pay is going to go up. Why pee money away on that. After 10 years of this, they could have bought the spectrum and saved Billions.

    Sentiment: Strong Buy

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    • What you're saying isn't true. In order to avoid a conflict of interest and for Clearwire to perform its fiduciary duty to shareholders, Sprint has the pay the same for the access as they would if they owned 0% of Clearwire. This increases the value of Clearwire (aka share price) which benefits shareholders. They are theoretically "rewarded" through share price, but cannot be given any non-competitive discount.

      Sentiment: Buy