Share “Dish Network makes $5.15B bid for Clearwire”

Dish Network makes $5.15B bid for Clearwire

Published on NewsOK Modified: January 8, 2013 at 5:51 pm •  Published: January 8, 2013

Shares of Clearwire rose 2 cents to $2.92 Tuesday and climbed 27 cents, or 9.3 percent, to $3.19 in after-hours trading. Sprint shares gained a penny to $5.97 during the day and lost 14 cents, or 2.4 percent, to $5.83 aftermarket. Dish Network shares were unchanged in late trading after closing at $35.97, down 37 cents.

Both Sprint and Nextel have been struggling financially, but Sprint recently agreed to sell 70 percent of itself to Softbank Corp. in a deal worth about $20 billion. Clearwire shares jumped on that news as investors concluded that Sprint would offer to buy Clearwire. Shares of Clearwire were trading at $1.30 at the time.

Clearwire's main asset is vast swaths of wireless spectrum, or space on the airwaves, that could be used to provide high data download speeds. Those are a crucial competitive factor in today's wireless industry. However, Clearwire's frequencies are difficult to use: they require many cell towers to cover an area, and the signals don't penetrate well into buildings.