Why Clearwire Shares Soared
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So what: It's a $20.1 billion deal that gives Softbank a 70% stake in Sprint, while Sprint remains Clearwire's largest investor and customer. The deal that's been announced doesn't directly involve Clearwire beyond its existing relationship with Sprint, but there are hopes that eventually Softbank may be interested in acquiring it as well.
Now what: Softbank CEO Masayoshi Son stoked speculation when he said that "anything can happen" regarding future acquisitions, without elaborating any further. Clearwire has valuable spectrum holdings that would be a large consideration for any possible deal. Additionally, Clearwire is preparing to deploy a TDD-LTE network next year, which is the same 4G network technology that Softbank uses in Japan.
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The article Why Clearwire Shares Soared originally appeared on Fool.com.Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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