Expected to reach 140 million people within 30 months - too little, too late? Sprint, Clearwire Complete Next-Generation WiMax Deal
Clearwire Corp. (CLWR) and Sprint Nextel Corp. (S) have completed a deal to combine their next-generation wireless Internet operations.
Sprint and Clearwire had said they will roll out Sprint's mobile WiMax Internet network, which is expected to reach as many as 140 million people, within 30 months of the deal's approval.
At the close of trading Friday, Sprint's shares added 11.6% to $2.79 and Clearwire's were up 9.8% at $6.62. Clearwire gained 1.4% in post market trading.
Intel Corp. (INTC), Google Inc. (GOOG), Comcast Corp. (CMCSK), Time Warner Cable Inc. (TWC) and Bright House Networks collectively invested $3.2 billion in the new company, which will retain the Clearwire name.
Sprint will hold around 51% of the firm, existing Clearwire shareholders will own 27% and the new investors will hold 22%.
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