Sprint reportedly in talks to buy out Clearwire

December 12, 2012

Sprint Nextel is in negotiations to acquire the remainder of Clearwire, its 4G WiMax network partner, according to news reports. Sprint owns about 51 percent of Clearwire’s stock and is the main wholesale customer of its national WiMax network. Clearwire was formed in 2008 through a joint venture between Sprint and a predecessor of Clearwire, with investments from Google and several cable operators. But the relationship between the two companies has been complicated from the start. Talks are ongoing on a possible Sprint buyout, which ultimately may not happen, according to stories in the Wall Street Journal and other news outlets, which cited unnamed sources. Clearwire is saddled with billions of dollars in long-term debt and continues to lose money, but it has huge spectrum holdings in most major U.S. markets. Sprint, which itself has been struggling against larger rivals AT&T and Verizon Wireless, will soon be newly rich if Japan’s Softbank wins approval to buy 70 percent of the company for US$20 billion.To read this article in full or to leave a comment, please click here

Link: http://www.pcworld.com/article/2019736/sprint-reportedly-in-talks-to-buy-out-clearwire.html