Notable Mergers and Acquisitions of the Day 08/19: (CLWR)/(S) (BKS) (ADK)

• Sprint (NYSE: S) is trading slightly higher early Friday, following reports it may seek a buyout of partner Clearwire (Nasdaq: CLWR) through outside investment in its own company.
  
  Sprint may be in investment talks about investment with cable providers like Comcast Corp. (Nasdaq: CMCSA) and Cablevision (NYSE: CVC), among others. Bloomberg reports that under one scenario, Sprint would use the money to buy equity in Clearwire is doesn't already own.
  
  Along with other investors like Time Warner Cable (NYSE: TWC), and Bright House Networks, Sprint and Comcast are looking for ways to buyout the company in order to complete the build out of their high-speed wireless network. Clearwire has been losing money over the last several quarters (15, to be exact), and a buyout would allow Sprint and the cable companies a better opportunity to focus Clearwire's direction to speed up the build out process.
  
  Clearwire plans to spend about $600 million in order to upgrade it's long-term evolution (LTE) network to compete more wholly against companies like AT&T (NYSE: T) and Verizon (NYSE: VZ).
  
  The investment by cable companies in Sprint would also aid them in being able to compete more wholly with AT&T and Verizon in offering high-speed Internet to customers.
  
  Sprint may also be looking to speed up the build out as it seeks to gain a better marketing position as AT&T and T-Mobile merger talks continue. Antitrust issues still linger in the potential acquisition, and Sprint may be looking to position itself better should the deal go through to avoid a potential buyout.
  
  
• Barnes & Noble, Inc. (NYSE: BKS) is trading stronger Friday morning, following reports that Liberty Media (Nasdaq: LINTA) has invested about $204 million in the company through the purchase of newly issued convertible preferred stock.
  
  Shares are up 3.4 percent in pre-market action.
  
  According to the release: "Under the terms of the strategic investment, Liberty purchased preferred stock, convertible into approximately 12 million shares or 16.6 percent (after giving effect to the issuance) of the Company's common stock at a price of $17 per share, and with a dividend rate of 7.75% per annum to be paid quarterly. The investment, which was approved by Barnes & Noble’s board of directors following a recommendation made by its Special Committee, closed today.
  
  In light of Liberty’s investment, the parties have ceased discussions regarding Liberty’s previously announced acquisition proposal.
  
  The convertible preferred stock will also be entitled to vote on matters submitted to the Company's shareholders on an as-converted basis following the later of the expiration of the waiting period and the completion of the Company's 2011 annual meeting of shareholders."
  
  
• Care Health Systems, Inc. (NYSE: ADK) has signed a definitive agreement to purchase a skilled nursing and assisted living community in Ohio for $13.5 million.
  
  The community has 193 beds, and generates an estimated $12 million in gross annualized revenues according to its most recent financials. After the transaction closes as planned before the end of the year, AdCare expects the facilities to be immediately accretive to its earnings.

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