Confirming news reported last week, Sprint and Clearwire made it official today that Sprint will acquire full ownership of Clearwire. Sprint announced they will pay $2.97 per share, or about $2.2 billion, to shareholders who own the almost 50% stake not currently owned by Sprint. The share price represents a 128 percent premium compared to Clearwire’s closing share price on October 11th, the day before discussions between Sprint and SoftBank were confirmed.
According to the press release issued today, Clearwire’s board of directors unanimously approved the definitive agreement. In addition, commitments were received from Comcast Corp., Intel Corp and Bright House Networks LLC to vote their shares, equal to a 13 percent stake, in favor of the agreement. The transaction is subject to the usual closing conditions, including regulatory approval. The deal is contingent on Sprint and SoftBank closing on their previously announced deal. Both agreements are anticipated to close sometime in mid-2013.