Clearwire shares, which fell about 6 percent in an initial reaction to the statement, recovered to trade just above the closing price of $3.38 on Friday.
"The Clearwire board has unanimously concluded that the proposed transaction with Sprint is the best strategic alternative for stockholders ... especially in light of the company's limited alternatives and the well-known constraints of its liquidity position," Clearwire said.
Four shareholders holding about 17 percent of Clearwire's shares said on Friday they would work together to seek a better deal for the wireless service provider.
Sprint offered to buy Clearwire in December for $2.2 billion but satellite TV provider Dish Network Corp announced a counterbid of $2.3 billion in January. Dish followed up in April by making a bid for Sprint.
Clearwire said in February it would evaluate Dish's bid but continued to recommend Sprint's offer.
(Reporting by Sayantani Ghosh in Bangalore)
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