Sprint signThe other it was reported that Sprint would buy out remaining Clearwire shares that it did not own for $2.2 billion, giving Sprint full control over the company. Naturally with such high stakes and a huge amount of money in place, Clearwire needs some sort of guarantee that the deal will go through, or at least get compensated if it doesn’t, and Sprint has revealed that they will be paying Clearwire $120 million as a breakup fee should the deal fall through. There could be a number of reasons why the deal could fall through – government regulators might not approve it, or the minority shareholders of Clearwire might not approve it either, especially given that some of them feel that $2.97 per share is too low when they had valued it at $5-$8. The $120 million breakup fee could also kick in if Clearwire decides to terminate the agreement should it not go through before the 15th of October 2013. In the meantime the deal stipulates that Clearwire will not be able to shop around for better deals which might not sit too well with the minority shareholders.

Filed in Cellphones . Tags: clearwire and Sprint.
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