Sprint today disclosed that it has agreed to pay Clearwire $120 million if its proposed $2.2 billion take-over of the company falls through. The deal is dependent on Sprint’s 70% stake sale to Softbank.
The deal also still needs to be approved by Clearwire’s minority shareholders and government regulators. Clearwire can terminate the agreement and collect the $120 million if the acquisition does not close by October 15 of next year. Last, Clearwire is not allowed to shop around for better offers. Sprint’s offer of $2.97 per share is half the share price some Clearwire investors sought for the company.