Clearwire resisted Dish’s advances for five months, but it has finally given in. Clearwire’s board recommended today that shareholders give Sprint the old heave-ho and back Dish’s offer to assume a major stake in the WiMAX operator.
The Sprint board is kicking Dish to the curb, saying the company has yet to submit an “actionable” offer, but it is giving Dish another week to come up with something better.
If Sprint’s shareholder vote doesn’t go its way on Wednesday, SoftBank has another option for entering the U.S. mobile market. According to Reuters, SoftBank is considering T-Mobile US as a plan B.
Sprint needed a national security director to keep eye on its soon-to-be owner SoftBank. So it picked a doozy of a candidate: Retired Admiral and former Chairman of the Joint Chiefs of Staff Mike Mullen.
The terms Dish wants in its bid to invest in or take over Clearwire violate Delaware state law, making the deal “not actionable”, Sprint’s lawyers maintain.
There are only so many companies left that can build a decent mobile network. Banning Huawei from the U.S. seriously skews the competitive balance in an already off-kilter industry.
Dish is upping its initial bid by 29 percent on the eve of a critical Clearwire shareholders vote. Sprint’s offer to take over Clearwire was already on shaky ground. Now it might collapse.
Sprint-SoftBank clears a big regulatory hurdle, but according to the WSJ, there are numerous national security strings attached, including a ban on Huawei gear from Sprint’s network.
Sprint is juggling its two competing buyout offers. It’s appointed a special committee to evaluate Dish’s proposal on one hand, but it’s not delaying its wedding date with SoftBank on the other.
Softbank certainly has the money to counter Dish’s offer, but Dish has much more to offer than cash, namely valuable spectrum and a huge TV network.