Clearwire 2008 Annual Report Download - page 101

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a
dj
ustment. Concurrent w
i
t
h
t
h
eC
l
os
i
ng, we entere
di
nto commerc
i
a
l
agreements w
i
t
h
eac
h
o
f
t
h
e Investors, w
hi
c
h
e
sta
bli
s
h
t
h
e
f
ramewor
kf
or
d
eve
l
opment o
f
t
h
e com
bi
ne
d
W
i
MAX
b
us
i
nesses
.
T
he following table lists the interests in Clearwire based on the Investors’ purchase price of
$
17.00 per share,
on Februar
y
27, 2009
:
I
nvestor Class A Stock Class B Stock
(
2
)
% Outstandin
g
Spr
i
nt Ho
ld
Co LL
C
.
......................
.
3
70
,
000
,
000
5
1.12%
C
omcast Cor
p
oration
.
.....................
.
61
,
764
,
70
5
8.
5
3
%
T
ime Warner Cable Inc.
.....................
32,3
5
2,941 4.47
%
B
ri
g
ht House Networks, LLC
.................
5
,882,3
5
3 0.81
%
I
ntel Cor
p
oration
..........................
58,823,530 8.13
%
Goo
gl
e
..................................
29
,
411
,
765 4.06
%
S
h
are
h
o
ld
ers o
f
O
ld
C
l
earw
i
re
(
1
)
..............
1
65
,
001
,
706 22.80%
C
W Investment Ho
ldi
ng
s
.
..................
.
588
,
235 0.08%
1
9
5,
001
,
706
5
28
,
823
,5
29 100.00%
(1) Includes shares of Clearwire Class A Common Stock issued to Intel Cor
p
oration on account of its shares of Ol
d
C
l
earw
i
re C
l
ass A Common Stoc
k
exc
h
ange
di
nt
h
e merger.
(2) The Investors hold an e
q
uivalent number of Clearwire Communications Class B Common Interests
Purc
h
ase Consi
d
eration
As a result of the Transactions, we acquired Old Clearwire’s net assets and each share of Old Clearwire Class A
Common Stoc
k
was exc
h
an
g
e
df
or one s
h
are o
f
C
l
earw
i
re C
l
ass A Common Stoc
k
,an
d
eac
h
opt
i
on an
d
warrant t
o
p
urchase shares of Old Clearwire Class A Common Stock and each share of restricted stock was exchan
g
ed for an
o
p
tion or warrant to
p
urchase the same number of shares of Clearwire Class A Common Stock, or a restricted share
o
f
our C
l
ass A Common Stoc
k
, as app
li
ca
bl
e
.
Purc
h
ase cons
id
erat
i
on
w
as
b
ase
d
on t
h
e
f
a
i
r
v
a
l
ue o
f
t
h
e
Old Cl
ear
wi
re
Cl
ass A
C
ommon
S
toc
k
as o
f
t
h
e
Closin
g
, which had a closin
g
price of $6.62 on November 28, 2008.
T
he total purchase consideration to acquire Old Clearwire is approximatel
y
$1.1 billion, calculated as follows
(in thousands, exce
p
t
p
er share amount):
Number of shares of Old Clearwire Class A Common Stock exchanged in the Transactions(1) . . . 1
6
4,48
4
C
l
os
i
ng pr
i
ce per s
h
are o
f
C
l
ass A Common Stoc
k
...................................
$
6
.
62
Fair value of Old Clearwire Class A Common Stock exchanged ......................... 1
,
088
,
88
4
F
air value ad
j
ustment for Old Clearwire stock options exchan
g
ed(2)
......................
3
8,01
4
F
air value ad
j
ustment for restricted stock units exchan
g
ed(3
)
............................
1
,
398
F
air value ad
j
ustment for warrants exchan
g
ed(4)
.....................................
18
,
490
Transaction costs
(
5
)
..........................................................
51
,
546
P
urc
h
ase cons
id
erat
i
on
f
or
Old Cl
ear
wi
re
b
e
f
ore sett
l
ement
l
oss ......................... 1
,
198
,
332
L
ess: net loss from settlement of pre-existing relationships(6) ...........................
(
80,
5
73
)
Purchase consideration for Old Clearwire
..........................................
$1,117,75
9
1
. In connection with the Transactions, the number of shares of Old Clearwire Class A Common Stock exchan
g
ed
i
n the Transactions includes the impact of the conversion of Old Clearwire’s Class B Common Stock to Old
89
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)