John Paczkowski

Recent Posts by John Paczkowski

Sprint’s Clearwire Acquisition: Who’s Going to Make What?

counting_moneyNow that Sprint has raised its bid for Clearwire a third and final time, seemingly ending the battle over the future ownership of the small wireless company, its proposed $5-per-share transaction heads to a shareholder vote on July 8.

Sprint claims to have support from investors with 45 percent of Clearwire’s minority shares, including a crucial group of shareholders that had complained publicly that Sprint’s previous offer was too low, and allied to push it higher. Now those four companies — Mount Kellett Capital Management, Glenview Capital Management, Chesapeake Partners Management and Highside Capital Management — along with other large shareholders from which Sprint has won support — Comcast, Intel and Bright House Networks — are all on board. And they all stand to make quite a bit of money if Sprint garners the support it needs to prevail, and closes the deal. Remember, the company’s final offer is 47 percent higher than the one that preceded it.

So, who among Clearwire’s big shareholders stands to make what, should Sprint acquire it along with its massive spectrum stockpile?

With a 12.66 percent in Clearwire, Comcast is the company’s largest shareholder, according to data from Thomson Reuters. At Sprint’s proposed $5-per-share offer, it will make in excess of $442 million.

Clearwire’s second-largest shareholder, Crest Financial, holds a 8.25 percent stake worth more than $288 million, given Sprint’s final offer. Crest, however, has been among the most active opponents of Sprint’s proposed acquisition. And it hasn’t yet signed the commitment that other big shareholders like Mount Kellett put their signatures to last week. A company spokesman did not respond to a request for comment.

Mount Kellett Capital Management stands to make collect a tidy sum as well: its 7.3 percent stake is worth over $265 million.

Below, Clearwire’s top 25 shareholders, their respective stakes in the company, and what they stand to make if it’s acquired by Sprint for $5-per-share.

Clearwire_shareholders_new

Correction: An earlier version of this post misstated the size of Mount Kellett Capital Management’s Clearwire stake.


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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik