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Clearwire board backs Dish’s bid; tells Sprint to shove off

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Sprint(s s) may think that Dish Network’s(s dish) latest proposal to invest in Clearwire is illegal, but Clearwire’s board doesn’t agree. The WiMAX operator said today it has switched its allegiance from Sprint to Dish.

The board rescheduled this week’s shareholder meeting for June 24, recommending that stockholders vote against Sprint’s most recent offer to take over the company, and vote for Dish’s $4.40-per-share bid instead.

The two companies have been dueling over Clearwire for the last five months, each with different plans in mind for the prize. Sprint is trying to get its house in order before its pending acquisition by SoftBank, and Dish is trying to find a network operator partner to launch its LTE network. The bad blood between them has been viscous, and Dish has even challenged the Softbank deal with its own counter offer for Sprint.

The outcome Dish-Clearwire tie-up would be entirely different than a Sprint-Clearwire deal. Sprint is already the largest stakeholder in Clearwire, and is trying to buy out the company completely. Dish is trying to assume enough of stake — possible as little as 25 percent — to ensure Sprint won’t railroad it when it tries to work Clearwire in the future. Dish owns satellite spectrum that’s been newly repurposed for LTE use, but it owns no network. Clearwire has the network infrastructure and expertise to deploy to launch that network.

The question remains whether Sprint will now raise its bid enough to turn the tide in its favor. If it doesn’t it might actually jeopardize its deal with SoftBank, which has taken an acute interest in the loads of spectrum Clearwire holds.

It’s a bizarre love-hate quadrangle between four communications companies with vastly different agendas. How will it turn out? Your guess is as good as mine.

2 Responses to “Clearwire board backs Dish’s bid; tells Sprint to shove off”

  1. John B

    I hate when the companys try to coddle the investors rather than sitting the investors down and explaining why certain deals are better than others. Initial financial goals don’t always equate to long term.

    In short, most investors Know nothing about business. Only how much will they will make. Why even have CEOs or corporate administration if in the end, it is all decided by investors?

    I don’t think a Clearwire/Dish partnership is a good long term investment. Clearwire may have the spectrum, but they really haven’t demonstrated any initiative to build out their infrastructure or improve service considering all the money Sprint has spoon fed them. If Clearwire does have the experience, I find very little evidence to prove it. Whether Softbank purchases Sprint, Sprint is being very aggressive in advancing to the next levels of providing great service with their network vision project regardless. What has Clearwire done?

    John B.