Sprint Gains Control of Clearwire
Today the on going struggle between Sprint and Clearwire may finally have come to an end, not in the way Clearwire had hoped however. Sprint has been unable to dictate Clearwire’s future up until now because they only held 48 percent of voting power in the company. Sprint found a way to secure the necessary voting power they needed to have the say within the company.
Sprint has been working with Eagle River Holdings to obtain their stock in Clearwire. Eagle River Holdings currently has a 2.3 percent stake in the company. Craig McCaw the company’s chief executive also owns 2.3 percent personally. The companies reached an agreement today selling almost 31 million of its 34 million Class A Common shares to Sprint as well as all of its Class B shares.
This transaction will cost Sprint $100 million dollars, but will give them the voting power they need to ultimately control Clearwire.
The Japanese based company Softbank, reported that they wanted Sprint to obtain Clearwire prior to agreeing to the acquisition of the 70 percent stake in Sprint for $20.1 billion.
Clearwire had the goal of establishing a fully realized national wireless network, after a multi-billion dollar investment by Sprint, Intel, Google and Comcast the plan faded and no nationwide network was established. All of the investors, with the exception of Sprint, bought their way out of Clearwire for fear that it was a failing company which they did not want to be partnered with.