Clearwire and Sprint Nextel form new WiMAX network

Source: Exec

Date :07/05/2008 05:31:18

Clearwire Corp. and Sprint Nextel Corp. today announced they have entered into an agreement to combine their next-generation wireless broadband businesses to create a new wireless communications company.

The new company will be named Clearwire and will focus on expediting the deployment of the first nationwide mobile WiMAX network.

Clearwire expects to enhance the speed and manner in which customers access the Internet, providing a mobile broadband experience for consumers, businesses, organizations, and institutions alike.

Investment

Sprint and Clearwire also announced that Intel Corp. through Intel Capital, Google Inc., Comcast Corp., Time Warner Cable Inc., and Bright House Networks have collectively agreed to invest $3.2 billion into the new company. The investment will be based on a target price of $20 per share of Clearwire’s common stock.

Upon completion of the proposed transaction, Sprint will own the largest stake in the company with approximately 51 percent ownership. Existing shareholders will own approximately 27 percent and the new strategic investors, as a group, will acquire approximately 22 percent.

Wireless networks

Craig O. McCaw, Chairman of Clearwire, said, “The power of the mobile Internet, which offers speed and mobility, home and away, on any device or screen, will fundamentally transform the communications landscape in our country.”

He added, “We believe that the new Clearwire will operate one of the fastest and most capable broadband wireless networks ever conceived, giving us the opportunity to return the US to a leadership position in the global wireless industry.”

May 07, 2008