News by Andrew Kameka on Wednesday June 26, 2013.
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DISH Network had previously said that it would focus its attention on acquiring Clearwire after it abandoned plans to merge with Sprint, but the company is walking away from yet another acquisition target and will have to look elsewhere to enter the wireless industry. DISH today announced that it has withdrawn its tender offer to acquire enough stock in Clearwire to exert more control and block Sprint's attempted takeover of the wireless carrier.
The withdrawal comes as a result of Clearwire choosing to recommend that stockholders vote in favor of Sprint's $5 per share offer. Rather than raise its own $4.40 per share offer, DISH issued a statement that explained:
"DISH's tender offer provided that it could be withdrawn, among other reasons, as a result of the recent change in recommendation by Clearwire."
DISH CEO Charlie Ergen has been vocal in his desire to enter the wireless service industry and turn his company into a wide-reaching service operator that could bundle television, phone, and Internet services. With SoftBank successfully outbidding DISH for Sprint, and Sprint in turn outbidding it for Clearwire, Ergen's company must look elsewhere. DISH gained federal approval to launch a wireless network in late 2012, but it wishes to pair with an existing company to build its network rather than use its current spectrum holdings and go at it alone. Possible alternatives include selling its spectrum, licensing data to other companies, or targeting fourth-place carrier T-Mobile, which recently merged with MetroPCS.source: DISH Network, via: The Verge
Andrew is based in Miami, Florida.