Sprint Nextel Corporation (S) Hurts Clearwire Corporation (CLWR)’s Q4 Results, But Story Is Bigger

The Washington based broadband player also seems to prefer Sprint Nextel’s deal, but DISH has certainly titillated Clearwire by making an offer of $3.30 per share, besting the $2.97 Sprint plans to offer for the buyout. While Clearwire still seems to favor Sprint’s offer, the fact that it has refused the first of Sprint’s payments so as not to void Dish’s offer highlights that the carrier is carefully considering all options. Meanwhile, Dish chairman Charles Ergen has said the company will consider selling some of its spectrum holdings in case of not finding a partner to launch nationwide wireless services.

Earlier this month, Clearwire filed a preliminary proxy statement on its agreement with Sprint Nextel in an indication that it is nearing a decision. Clearwire needs to make a decision sooner rather than later in order to receive funding from one of the companies so as to proceed with its LTE deployment plan. Although Clearwire will receive a flat fee this year as part of an old contract with Sprint, the amount will be enough to cover operational costs only. Predicting Clearwire’s decision is pointless as of now. The outcome will surely have long term repercussions for not just the company that manages to acquire it, but also to other industry players including AT&T and Verizon.

The article Sprint Hurts Clearwire’s Q4 Results, But Story Is Bigger originally appeared on Fool.com and is written by Jacob Wolinsky.

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