Sprint to Announce Joint Venture with Clearwire (Updated)

Update: In a press release and conference call today, Sprint and Clearwire have announced the formation of a new company that will be publicly traded on the NASDAQ exchange and operate under the Clearwire name.

Under the new agreement, Sprint would own 51% of the operator with 27% owned by current Clearwire shareholders, and the remaining 22% being owned by the investor group comprised of Comcast, Google, Time Warner Cable, Bright House Networks, and Intel through the Intel Capital investment division.

The transaction is expected to be fully completed by the 4th quarter of the year and the initial investment is expected to lead to a target share price of $20 per share of the new company. Under the new arrangement, the new Clearwire is expected to cover 120 to 140 million in 2010, expanding on the initial expectations set by Sprint to cover 100 million by the end of the year.

Google has committed to developing applications, search solutions, and its Android platform on the new network and select devices on Sprint’s CDMA network while Intel has committed to deploying WiMax on the current and next generation Centrino platforms. The aforementioned cable providers will also gain wholesale access to the Sprint CDMA network in order resell products and services in a bundle package with other cable services.

The Wall Street Journal has filed a report stating that Sprint will announce that it has reached an agreement with Clearwire to merge the XOHM WiMax commercial unit with the WiMax services provider founded by Craig Mc Caw in a deal worth $12 billion.

Most of the current initial funding totaling $3.2 billion for the new company will come from Comcast, Intel, Time Warner, and Google. An official announcement is expected as soon as Wednesday morning.

From the initial press conference detailing Sprint’s selection of the technology in 2005 as its 4G platform to the beginning of restricted testing in 2007 Sprint’s WiMax venture has been seen as both an asset and a liability in terms of deployment costs, manufacturer support, and viability.

Humberto Saabedra is the Editor-in-Chief of AnimeNews.bizPhoneNews.com and an occasional columnist for Ani.me. He can also be found musing on things at @AnimeNewsdotbiz

9 responses to “Sprint to Announce Joint Venture with Clearwire (Updated)”

  1. Don Louie

    About time Sprint got some good news, was three of hearing about buyouts, takeovers, mergers and spinoffs for the only wireless carrier I want

  2. Scott

    stock almost up to 10

    I love sprint. best prices, best network, most roaming agreements.

    i hate att and verizon. their customer service might be better, but there rates are alot higher

    go sprint

  3. Tony

    Yes, I agree Sprint is the best and I am glad for the good news!

  4. a brotha from anotha motha....

    honestly im not a big sprint fan. i have sprint and they are ok. their CS has improved but they still need alot of work. it doesnt matter if you have great service if the customer hates dealing with someone who will talk down to them all the time. honestly, now with all of this happening getting wimax up and going and talks that DT might buy them out it might make sprint (while the name stay until they change it to S-mobile or T-sprint) one of the top companies not only in the US but all of europe due to the fact that now they customers of DT will be able to use their phone both here in the US with fast internet and overseas with great service. GSM is the standard over there but here CDMA/wimax will be the leader. you have to give it up to the new CEO because he did something forsee couldnt do. which is fix a broken dam of running customers……

  5. carcarx

    Here’s a bit more detail, including, reportedly, guarantees that WiMax could use EV-DO when
    WiMax isn’t available:

    http://www.cellular-news.com/story/31002.php

  6. Christopher Price

    WiMAX already can be used with EV-DO… that’s nothing new. Dan Hesse has said that mobile broadband cards will ship this year that support dual-mode EV-DO & WiMAX.

  7. Don Louie

    I always wondered if thier qchat could work on Wi-Max, that makes it sound like that true. Let me know if I’m reaching

  8. XOHM Announces September 2008 Launch for Baltimore Area | PhoneNews.com

    […] criticism for its numerous delays and expense which were downplayed when both Sprint and Clearwire announced a joint venture which would be spun off into the new Clearwire with investment from Intel, Google, […]

  9. Clearwire Shareholders Approve XOHM Merger | PhoneNews.com

    […] billion in capital which is almost three times the expected target value when the merger was first announced in September. Trackback | Permalink […]

Leave a Reply