Clearwire’s stock surges on new investment report
Financial crisis that has been indicated will happen soon in US, affecting to almost sectors including broadband services company. The new report is regarding the future of one of mobile broadband service company Clearwire Corp. (CLWR) which witnessed a surge in its stock price following another published report indicating a possible acquisition by current majority owner Sprint Nextel Corp. (S). it has been reported that previously Clearwire’s stock was up more than 35% after Bloomberg releases a report that Sprint Nextel will acquire Clearwire. Sprint Nextel previously has been indicating that they are talking with the cable television operator including Comcast Corp and Time Warner Cable to make investment. The share composition of those cable television companies and Sprint Nextel in Clearwire is Bright House Networks L.L.C., currently own a 15% and Sprint Nextel 54%
Beside those cable television companies, Bloomberg also reports that Sprint Nextel also talked with Cox Communications Inc. and Cablevision Systems Corp. to discuss about Clearwire acquisition. If you remember, Cox Communications Inc. has announced last year to build out its own 3G network. The reports also indicate that Clearwire is looking for at least $600 million to begin rolling out LTE equipment across its current WiMAX footprint. Comcast, Time Warner and Sprint Nextel all currently offer mobile broadband offerings using Clearwire’s WiMAX network, though the LTE standard has gained significant market momentum and is seen as the go-to technology for next-generation networks.
Financial crisis that predicted will come soon to US, drives many companies and industries to make strategic decision to safe their business. Merger between them seems will be good option for any industries to keep survive. This situation will also happen to mobile broadband service companies such as Clearwire. Acquisition seems will happen to this broadband companies sooner or later.
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