Welcome!

News Feed Item

Sprint Nextel and Clearwire Deal Shakes Up Telecom Industry

The ShinesRooms.com Provides Stock Research on Sprint Nextel Corp. and Clearwire Corp.

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

http://www.ShinesRooms.com/S121812.pdf

http://www.ShinesRooms.com/CLWR121812.pdf

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.

About Shinesrooms.com

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.

Add to Digg Bookmark with del.icio.us Add to Newsvine

Contact Person:
Michael Thomas Smith
Marketing Coordinator
[email protected]


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Silicon India has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Published in Silicon Valley, Silicon India magazine is the premiere platform for CIOs to discuss their innovative enterprise solutions and allows IT vendors to learn about new solutions that can help grow their business.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
You want to start your DevOps journey but where do you begin? Do you say DevOps loudly 5 times while looking in the mirror and it suddenly appears? Do you hire someone? Do you upskill your existing team? Here are some tips to help support your DevOps transformation. Conor Delanbanque has been involved with building & scaling teams in the DevOps space globally. He is the Head of DevOps Practice at MThree Consulting, a global technology consultancy. Conor founded the Future of DevOps Thought Leade...
Jo Peterson is VP of Cloud Services for Clarify360, a boutique sourcing and benchmarking consultancy focused on transforming technology into business advantage. Clarify360 provides custom, end-to-end solutions from a portfolio of more than 170 suppliers globally. As an engineer, Jo sources net new technology footprints, and is an expert at optimizing and benchmarking existing environments focusing on Cloud Enablement and Optimization. She and her team work with clients on Cloud Discovery, Cloud ...
Everyone wants the rainbow - reduced IT costs, scalability, continuity, flexibility, manageability, and innovation. But in order to get to that collaboration rainbow, you need the cloud! In this presentation, we'll cover three areas: First - the rainbow of benefits from cloud collaboration. There are many different reasons why more and more companies and institutions are moving to the cloud. Benefits include: cost savings (reducing on-prem infrastructure, reducing data center foot print, redu...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
The technologies behind big data and cloud computing are converging quickly, offering businesses new capabilities for fast, easy, wide-ranging access to data. However, to capitalize on the cost-efficiencies and time-to-value opportunities of analytics in the cloud, big data and cloud technologies must be integrated and managed properly. Pythian's Director of Big Data and Data Science, Danil Zburivsky will explore: The main technology components and best practices being deployed to take advantage...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busi...