You're right... it's dead at $2.97. What is crazy is the idea that it'll go off at $8 to $12. High calculations of the value, net of debt, of clearwire's spectrum are only useful to the extent that they help get a bid that's closer to $4 or $4.50 at the outside, IMO. Dan Hesse may be crooked, but he has sufficient leverage to avoid paying what clearwire is actually worth from a net-asset perspective.
Have you ever walked into car dealership and offered 95% of fair value that you will not go past to get the deal done? Let me break it down to you in terms you can understand. You are looking to buy a car for $40,000. If you walked into a dealership and said I will give you $39,800 for the car you have invoiced at $40,000, what do you think the dealer would say? Son you have a deal.
Now let's talk about the real world and the process of buying a car. In the real world your first offer is ALWAYS a lowball offer so as not to reaveal your hand as to high high you will go to get the deal done. So in the same scenario, you walk into the dealer and offer $34,000(15% off invoice) and then the negotiations will begin. The dealer will offer incentives, 0% financing, above value tradein prices etc... to get you closer to where you want to be in terms of getting the best deal possible.
The point is had you walked in and offered at fair value you would have never been given consideration for the other deals to get you to sign because you came in too high. This is exactly what is going on except the dealership is buying it's own car. The dealership is Clearwire and the buyer is Sprint, however they are the same as Sprint is the majority owner of Clearwire. This means that when Sprint hit Clearwire with the first lowball offer they should had went to the negotiating table to discuss a better offer, but instead accepted an etremely undervalued offer. This is why people are so upset.
The negotiations never had a chance to reaching $8-16/share like they should have because Clearwire simply said ok where do I sign.