It’s Over: Dish Gives Up on Its Bid for Clearwire

by Christopher Freeburn | June 27, 2013 9:16 am

Directv dish 630 300x168 It's Over: Dish Gives Up on Its Bid for Clearwire[1]Sprint (S[2]) is no longer facing a challenge to its plan to acquire all[3] of Clearwire (CLWR[4]).

On Wednesday, Dish Network (DISH[5]) announced that it is abandoning its bid to purchase the minority stake in Clearwire not already owned by Sprint. The move comes after Sprint upped its offer for Clearwire to $5 a share. That topped the $4.40 a share Dish was willing to pay, Reuters notes.

Last week, Dish also dropped a bid to purchase Sprint itself after the wireless carrier’s shareholder accepted enhanced buyout terms from Japan’s Softbank, which announced plans to buy the nation’s third largest wireless carrier[6] last year.

Dish has been looking to expand its business into wireless communications. It has acquired $3 billion worth of wireless spectrum and is thought to be seeking a wireless partner to build the business. Another potential target for Dish could be T-Mobile (TMUS[7]), whose majority owner, Deutsche Telekom is widely thought to want to leave the U.S. market.

Sprint said it would acquire the outstanding stake[8] in Clearwire late last year for $2.90 a share.

Shares of Clearwire fell more than 2% in pre-market trading on Thursday.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/08/Directv_dish_630.jpg
  2. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  3. challenge to its plan to acquire all: http://www.reuters.com/article/2013/06/26/us-dish-clearwire-idUSBRE95P1C320130626
  4. CLWR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CLWR
  5. DISH: http://studio-5.financialcontent.com/investplace/quote?Symbol=DISH
  6. plans to buy the nation’s third largest wireless carrier: http://investorplace.com/2012/10/clearwire-shares-surge-on-sprint-softbank-deal/
  7. TMUS: http://studio-5.financialcontent.com/investplace/quote?Symbol=TMUS
  8. acquire the outstanding stake: http://investorplace.com/2012/12/sprint-seeks-to-acquire-remaining-clearwire-stake-for-2-1b/

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