Clearwire Corporation (CLWR), Sprint Nextel Corporation (S): The Most Confusing Bidding War Ever! What Will Happen?

The only real question for me is with Clearwire. I don’t know where it fits into the scheme of this deal. If Dish and Sprint Nextel Corporation (NYSE:S) merge then the combined assets would include both a wireless network and a spectrum. If Softbank purchases Sprint then a spectrum is still needed – but not when Dish is involved. Thus, I conclude that Clearwire gets left out in the cold, which could end horribly for shareholders.

With that said, I will throw a little more fuel in the fire, suggesting that Sprint is currently a puppet on a string, and Softbank is the puppet master. I don’t think Sprint Nextel Corporation (NYSE:S) would have made the offer if not under the guidance of Softbank. Therefore, even if Softbank acquires T-Mobile and Dish says “see ya later” to Clearwire, I wouldn’t be shocked if T-Mobile makes a bid for Clearwire (as the new puppet)!

Then, everyone might be happy – but like I said, this is just speculation – there are 100 possible outcomes. My suggestion is to understand that this is a risky scenario, and to invest with caution – or take a number and place your bets. The only thing that’s certain is that this will get a lot more confusing before the outcome is clear. Hopefully, you are on the right side, if you’re playing the game!

Brian Nichols has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article The Most Confusing Bidding War Ever! What Will Happen? originally appeared on Fool.com.

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