Sprint to merge with Clearwire
Posted by Media Outrage on May 7, 2008
NEW YORK – Clearwire and Sprint Nextel are planning to merge their wireless broadband units to create a new $14.55 billion wireless communications company.
The new company, to be named Clearwire, will receive a $3.2 billion investment from Intel Corp., Google Inc., Comcast Corp., Time Warner Cable Inc. and Bright House Networks. The investment is based on a target price of $20 per Clearwire share and will give the companies a 22 percent stake in the new venture.
Overland Park, Kan- based Sprint Nextel Corp will be majority owner with a 51 percent equity stake, while existing Clearwire shareholders will receive about 27 percent interest.
Clearwire already provides wireless Internet service in some parts of the country, using a WiMax-like technology. The company had a subscriber base of nearly 400,000 wireless broadband customers at the end of 2007.
The new company is looking for a U.S. network deployment between 120 million and 140 million people by the end of 2010.
Sprint and Clearwire, a startup founded by cellular pioneer Craig McCraw, had already announced their plans to build out networks using WiMAX technology, but had been looking for outside funding.
The deal, which has been approved by the boards of all companies involved, is expected to close during the fourth quarter. The company will apply for a Nasdaq listing under the ticker “CLWR.”
Mediaoutrage- Wow no longer will it be called Sprint. Interesting. How many of you have sprint and how do you feel their service?
w2m said
I have never had Sprint but this does prove interesting. I want to see how this plays out.
B.Price said
Sprint has been pretty good to me considering that I was at once a Nextel user and got thrown on to their network. Customer service is seriously lacking, but the coverage is on point. Should be interesting to see how this plays out.