Sprint, Clearwire Close Deal Forming WiMax Venture
Company Receives $3.2 Billion From Comcast, Time Warner Cable, Bright House, Intel and Google
By Todd Spangler -- Multichannel News, 11/28/2008 1:07:00 PM
Clearwire and Sprint Nextel announced Friday that they have completed the transaction to combine their high-speed wireless Internet businesses, a venture that has received backing from Comcast, Time Warner Cable, Bright House Networks, Intel and Google.
The new company retains the Clearwire name and remains headquartered in Kirkland, Wash. With the closing, Sprint contributed all of its 2.5-GHz spectrum and its WiMax-related assets, including its Xohm business, to Clearwire.
In addition, Clearwire has received a $3.2 billion cash investment from Comcast, Intel, Time Warner Cable, Google and Bright House, as the companies announced in May. Sprint will own a 51% interest in the venture; Clearwire will hold 27%; and the investor group will hold a combined 22% of the equity.
Clearwire and Sprint have said they expect the WiMax network the new company will build out to reach 60 million to 80 million people by 2009, 140 million by 2010 and 200 million by 2011.
Earlier this month the Federal Communications Commission voted unanimously to approve the Clearwire venture.
Clearwire plans to hold a conference call Monday, Dec. 1, at 10 a.m. ET to provide additional details about the new company.
