Mobile

Clearwire stock jumps 8% on Dish’s $5 billion offer

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It’s a good day for wireless service provider Clearwire, which currently has two lucrative offers that could make its shareholders very happy.

Yesterday, the satellite TV company Dish made an offer to buy a sizable chunk in Clearwire stock as well as 24 percent ownership in Clearwire’s spectrum — a deal that would value the wireless provider at about $5 billion. This comes less than a month after majority stakeholder Sprint made an offer to buy Clearwire’s remaining 50 percent stake for $2.2 billion.

Wall Street has responded today by giving Clearwire’s stock an 8 percent boost at peak. The stock price is currently holding at about 7.8 percent at the time of publication, or $3.14 a share. That’s 16 cents lower than Dish’s offer, but this is still a nice gain.

If Clearwire’s shareholders decide to go with Dish’s offer, it would boost the value of Clearwire and allow Dish to advance its plans to launch its own wireless Internet service. Sprint, however, would then be forced to continue sharing Clearwire’s spectrum with its rivals instead of strengthening its own network.

CLWR Chart

CLWR data by YCharts

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