|By Marketwired .||
|December 18, 2012 09:45 AM EST||
NEW YORK, NY -- (Marketwire) -- 12/18/12 -- Consolidation amongst telecommunication companies continued again this week as Sprint Nextel Corp.'s (NYSE: S) $2.2 billion bid to buy out the remaining stake in Clearwire Corp. (NASDAQ: CLWR) was approved by the latter's board. The $2.2 billion bid was raised from a previous offer that Clearwire did not accept. It could be met with some resistance from some shareholders but the deal is expected to be finalized in the middle of next year and has already had an impact on the industry. It should also be noted that the deal is contingent upon finalization of Japan's SoftBank agreement to buy out 70% of Sprint. That deal has also met opposition with minority shareholder, Crest Financial Ltd., filing a lawsuit in an attempt to halt the transaction.
Access our free reports on Sprint Nextel Corp. and Clearwire Corp. Traders can also connect to our Wall Street Trading Floor where our research desk and market pros are standing between 8:50 am to 4:15 pm ET at
The completed deal would beg the questions: How does the deal affect each company and what ramifications will there be for the industry as a whole?
High debt levels have challenged Clearwire for some time now but if the transaction goes through, Sprint Nextel looks well positioned to deal with it. Clearwire has been looking for financing to make upgrades to its network and increase its 4G capabilities. Shares of Clearwire have already been dented in the wake of the deal but appear to be in a much better position to recover in the long-term. Patient investors could be rewarded down the road after it puts its newly acquired cash to work. Disappointed minority shareholders do threaten to challenge the deal though as they deem that the bid undervalued the vast spectrum Sprint will receive. It does appear unlikely at this time that their opposition will be sufficient to block the deal however.
Sprint Nextel, currently the nation's third largest wireless carrier, benefits from the deal by becoming an increased competitive threat. Clearwater's technology obtained in the deal should allow it to better challenge its two larger rivals. Sprint's CEO Dan Hesse recently echoed this notion, "Today's transaction marks yet another significant step in Sprint's improved competitive position," and that, "Sprint is uniquely positioned to maximize the value of Clearwire's spectrum and efficiently deploy it to increase Sprint's network capacity."
Perhaps more importantly, the deal will allow Sprint to build a stronger network without relying on joint ventures. According to Sprint, the company is already working with suppliers to ensure compatibility with the three separate frequencies that its combined network will employ. Furthermore, hot-spot broadband access devices may be available in 2013 with phones to potentially follow in 2014. The strengthening of its network is even more attractive after factoring in the current sales trends of smartphones and tablet devices as well as the greater data demands they are placing on telecom providers. Sprint could also be in-line to make further deals when it has the financial backing that comes with a completed deal with SoftBank.
For the industry as a whole, the move could portend increased consolidation and acquisition activity in 2013. The deal underscores the tremendously high levels of competition and the pressure applied by rapid technological turnover. These two factors have already forced numerous smaller companies into dangerously high debt levels making them even more likely to accept a buyout.
Moving forward, the Sprint/Clearwater deal may have set the table for a very active 2013 for telecommunications providers. An easing of fiscal cliff concerns may also loosen the purse strings of companies hesitant to take on more debt in the face of tremendous economic uncertainty. Another White House meeting between President Barack Obama and Republican House Speaker John Boehner this week is fueling optimism that a deal could be reached in as soon as a few days.
Shine's Rooms is the brain child of David Shine, a 13 year Wall Street veteran with a stellar track record. For 13 years Shine has trained thousands of traders to navigate and profit from the markets. Using cutting edge technology, Shine provides you with a community in which you can trade alongside Shine and his Team as they guide you through the market's ever-changing landscape.
To view our disclaimer, visit this link http://www.shinesrooms.com/disclaimer.html.
Michael Thomas Smith
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Mar. 28, 2017 12:45 AM EDT Reads: 953
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
Mar. 28, 2017 12:00 AM EDT Reads: 1,226
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, discussed how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a practic...
Mar. 28, 2017 12:00 AM EDT Reads: 8,353
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
Mar. 27, 2017 11:30 PM EDT Reads: 3,057
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Mar. 27, 2017 09:45 PM EDT Reads: 3,634
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with budd...
Mar. 27, 2017 09:45 PM EDT Reads: 3,050
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
Mar. 27, 2017 08:15 PM EDT Reads: 6,318
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Mar. 27, 2017 07:45 PM EDT Reads: 2,194
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Mar. 27, 2017 07:30 PM EDT Reads: 4,592
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
Mar. 27, 2017 06:45 PM EDT Reads: 12,928
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle.
Mar. 27, 2017 06:00 PM EDT Reads: 3,011
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Mar. 27, 2017 03:45 PM EDT Reads: 1,429
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Mar. 27, 2017 03:30 PM EDT Reads: 2,968
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Mar. 27, 2017 02:45 PM EDT Reads: 1,980
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Mar. 27, 2017 02:30 PM EDT Reads: 4,037