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Sprint buys more Clearwire shares to own 50.8 percent of the company


News by Andrew Kameka on Thursday October 18, 2012.

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Sprint has made a surprise move and acquired enough shares of wireless company Clearwire to push its ownership stake to 50.8 percent. While it was widely speculated that Sprint would acquire Clearwire, which Sprint already had a 48 percent interest, the company was not expected to make a move until closing its 20.1 billion transaction with Japanese carrier Softbank. Rather than wait, Sprint chose to buy out Eagle River Holdings to gain enough shares to control Clearwire.

Sprint previously owned 54 percent of Clearwire shares, but the company's stake dropped when Clearwire issued new equity in June. That allowed Sprint to reduce liability in Clearwire, which has reported several disappointing financial quarters. Reuters reports that according to FBR Capital Markets analysts, reacquiring a majority stake "eliminates a major risk for Sprint, in that it can now control Clearwire's valuable spectrum assets and ensure unfettered access to them."

source: Reuters

 
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Andrew Kameka
Andrew is MobileBurn.com's managing editor. He is based in Miami, Florida.

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