Why Clearwire Shares Were Cleared for Takeoff
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Clearwire were cleared for takeoff today, up by 15% at the high, on reports that Sprint Nextel is actively considering buying the rest of the company.
So what: Sprint already owns 51% of Clearwire, but despite that majority ownership is unable to exert control over key strategic decisions. CNBC said that a deal could happen by the end of the year and Clearwire could be sold for greater than $3 per share.
Now what: Talk of Sprint acquiring the rest of Clearwire has persisted for ages, as it would give Sprint additional spectrum holdings that would make it more competitive with its larger rivals. With the Softbank deal that's currently pending, Sprint would have more funds at its disposal to expand its network, as well as potentially acquire Clearwire. This isn't the first time investors have heard these rumors before, and it won't be the last.
Interested in more info on Clearwire? Add it to your watchlist by clicking here.
The article Why Clearwire Shares Were Cleared for Takeoff originally appeared on Fool.com.Fool contributor 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.