Friday, November 28, 2008
A Youtube Dream Unfolding
=DJ Sprint, Clearwire Complete Next-Generation WiMax Deal.
DOW JONES NEWSWIRES
-Clearwire Corp. (CLWR) and Sprint Nextel Corp. (S) have completed a deal to combine their next-generation wireless Internet operations.
-Sprint and Clearwire had said they will roll out Sprint's mobile WiMax Internet network, which is expected to reach as many as 140 million people, within 30 months of the deal's approval.
-At the close of trading Friday, Sprint's shares added 11.6% to $2.79 and Clearwire's were up 9.8% at $6.62. Clearwire gained 1.4% in post market trading.
-Intel Corp. (INTC), Google Inc. (GOOG), Comcast Corp. (CMCSK), Time Warner Cable Inc. (TWC) and Bright House Networks collectively invested $3.2 billion in the new company, which will retain the Clearwire name.
-Sprint will hold around 51% of the firm, existing Clearwire shareholders will own 27% and the new investors will hold 22%.
-Sprint, which has been struggling as its subscribership continues to fall, has considered several strategies to catch up with rivals AT&T Inc. (T) and Verizon Communications Inc. (VZ), including jettisoning the Nextel network or selling its long-distance network.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com
-Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=AhwCpQQ0pWKzJrCNi%2Bzc7w%3D%3D.
-You can use this link on the day this article is published and the following day.
-(END) Dow Jones Newswires November 28, 2008 13:50 ET (18:50 GMT) Copyright (c) 2008 Dow Jones & Company, Inc.- - 01 50 PM EST 11-28-08
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2 comments:
A few months back there was talk about MSFT buying RIMM around $40/share. What do you all think now that RIMM is below $40
Many well managed tech firms have been taken down for dividend paying stocks. We do not see that changing unless companies begin buying each other. Yet they are in defensive mode because of the cash crunch, so therefore the conundrum.
So much focus is on residential real estate and mortgage rates today. But even if the gov't forces mortgage rates lower, does that mean higher employment right away? Esp. in finance related jobs? RIMM's devices are mainly used for enterprise purposes, so therefore we don't see MSFT laying out king cash for a hardware that could suffer through 2009 at least. We would stick with AAPL, as they have $25B in cash, more than many banks. We would also nibble on Google, as they have a great cash position and will only devour competitors. iPod offers AAPL a gigantic cushion in tough times. Stay clear of RIMM, eventhough their technology is second to none.
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