Boston, MA 02/12/2013 (wallstreetpr) – Dish Network Corp (NASDAQ:DISH)’s spectrum worth “billions of dollars of spectrum” could be available for sale in the coming year under chairman Charles Ergen’s plan B, if the satellite channel fails to find a wireless carrier ally.
With an aim to develop a wireless network that delivers multimedia content to customers DISH has made an offer of $3.30 per share for minority stake in the wireless carrier Clearwire Corporation (NASDAQ:CLWR). If the deal is successful the satellite channel’s subscribers would be able to watch videos everywhere they go, both in the home TV and on mobile devices.
In case of failure to get the deal finalized, Ergen, who is also CEO of the satellite TV company, plans to embrace failure by trying “a new approach” and place a “for sale” sign on DISH Network Corp (NASDAQ:DISH) spectrum.
Sprint Nextel Corp. (NYSE:S) which already owns 50% of total outstanding shares in the wireless company has offered as much as $2.97 per share for half of the common stock of the company it does not own right now. Clearwire Corp (NYSE:CLWR) has already filed a preliminary proxy statement of the definitive agreement with Sprint.
Ergen says, his bid in more than just an “illusory offer” “We’re serious about it…… Sprint will have to do more to keep us out”. Dish Network Corp (NASDAQ:DISH) shares plunged by 1.4%, yesterday. The shares have gained 25% during 2012.
Stakes are high for Sprint Nextel (NYSE:S) as its long term evolution network is in the pipeline and it has to come at par with the two largest US carriers Verizon Communications Inc (NYSE:VZ) and AT&T Inc (NYSE:T). The deal can also bring in synergies for the third largest American wireless carrier as the network of Japanese owner SoftBank (TYO:9984) bears is very similar to Clearwire’s spectrum.
The shares of DISH Network Corp (NASDAQ:DISH) were up by 0.65% and currently trading at $37.34. The shares of Sprint Nextel Corporation (NYSE:S) were up by 1.21% and currently trading at $5.87. The shares of Clearwire Corporation (NASDAQ:CLWR) were up by 1.57% and currently trading at $3.24. The shares of AT&T Inc (NYSE:T) were up by 0.86% and currently trading at $35.53 . The shares of Verizon Communications Inc (NYSE:VZ) were up by 0.20% and currently trading at $44.41.
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