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CLWR -- Sprint drives management change  

Posted by: hallareng (---.hsd1.co.comcast.net) 

Date: March 11, 2011 07:14AM 

Opinion: 

 Yesterdays management shakeup at Clearwire demonstrates Sprints deepening influence on the fledgling carrier. Our initial reaction was that these changes would be negative for Clearwire stock, as the market hates uncertainty. Looking beyond the immediate, we see these changes as positive for Clearwire stock (not to mention Sprints) as this is the firmest outward sign of the two companies improving relations. Clearwires new CEO, John Stanton, brings considerable resources to the table. For the last several months he has succeeded at thawing relations with Sprint. His long term-track record argues for his staying involved. After all, he sold Western Wireless to T-Mobile. 

 Longer term, this change calls a very large question as to how Clearwire shareholders will fare under any settlement with Sprint and with new management. 

 Background and analysis 

 Yesterday after the close, Clearwire stunned many by announcing the departures of its CEO Bill Morrow, Chief Commercial Officer Mike Sievert and CIO Kevin Hart. John Stanton, the companys board chairman, will assume interim CEO duties. Erik Prusch, formerly the CFO, will become the COO and be responsible for day to day operations. Hope Cochran, former Sr. VP and Treasurer, is the companys new CFO. 

 We believe these actions had to be blessed, if not driven, by Sprint and Clearwires other strategic investors, Intel, Google, Comcast, Time Warner Cable, and BrightHouse. Given Stantons ties to T-Mobile, we suspect these actions help clear the way for a more constructive relationship between T-Mobile, Sprint, and Clearwire. There a many permutations as to how this three way relationship might evolve. 

 Our concerns regarding this change relate to Clearwires longer term. We expect investors will take time to evaluate new management and a new Sprint relationship. Given Stantons experience and stature we expect the longer term will resolve quickly and in a favorable manner.   

 
 On 11/03/11 11:49 AM, gdt wrote:  {PJ Louis LLC} Executive Shake-Up at Clearwire Prompts More Questions

	Gerard6656
	3/11/2011