Sprint in talks to buy Clearwire; deal seen as helpful for carrier's LTE plans
Clearwire currently provides the WiMax 4G service for Sprint's 4G enabled handsets and says it needs $600 million to build out an LTE network alongside WiMax. As we reported, back in July, Sprint reached a deal with wholesale pipeline provider LightSquared in which the latter agreed to pay Sprint $9 billion and give the carrier service credits over a 15 year period in exchange for the right to use Sprint's infrastructure to build an LTE network.
While Sprint already owns a majority of Clearwire, Comcast and Time Warner cable are minority investors in the company which has been operating in the red. Rumors of a deal pushed Clearwire's stock up 30% on Friday to $3.01, the biggest one-day gain for the stock since July 2007. Despite Friday's gain, the stock is still down 42% so far this year.
source: Bloomberg via BGR