In what was one of the less definitive notes of December, Sprint Nextel (NYSE:S, news, filings) offered the markets an update on its relationship with WiMAX protagonist clwr. I say 'less definitive', because their update was mainly to tell us what they might or might not do:
- They might exercise their preemptive rights to purchase $760M of those exchangeable bonds that Clearwire just issued. But they have until January 2, 2011 to make up their minds, which they haven't done.
- They and the others involved amended the Clearwire Equityholders' Agreement to allow Sprint to surrender voting rights to reduce its percentage below 50%, allowing them flexibility in avoiding risk to themselves that might derive from Clearwire's own risk. So they might do that at some point, or they might not. But now they have the flexibility to do it if they ever actually want to.
- They have no current plans to buy Clearwire outright, but continue discussing further investment in the company with them. And whatever happens will happen.
So now that we have that straight, or not, I guess we can all just wait for the holiday season to be over so that Sprint can issue another PR that actually involves something non-hypothetical. I'm sure everything will be much clearer then.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!Categories: Financials · Wireless