Intel, Google, Comcast, Time Warner Cable, and Bright House Networks Form New Company

[malware]

Clearwire Corporation and Sprint Nextel Corporation today announced that they have entered into a definitive agreement to combine their next generation wireless broadband businesses to form a new wireless communications company. The new company, which will be named Clearwire, will be focused on expediting the deployment of the first nationwide mobile WiMAX network to provide a true mobile broadband experience for consumers, small businesses, medium and large enterprises, public safety organizations and educational institutions.


The new Clearwire expects to dramatically enhance the speed and manner in which customers access all that the Internet has to offer at home, in the office and on the road.

Sprint and Clearwire also announced today that five innovative technology, content and communications leaders – Intel Corporation through Intel Capital, Google Inc., Comcast Corporation, Time Warner Cable Inc., and Bright House Networks – have collectively agreed to invest $3.2 billion into the new company. The investment by the five strategic investors will be based on a target price of $20.00 per share of Clearwire's Common Stock, subject to a post-closing adjustment. This adjustment is based upon the trading prices of new Clearwire common stock on the NASDAQ Market over 15 randomly selected trading days during the 30-trading day period ending on the 90th day after the closing date. The price per share will be based upon the volume weighted average price on such days and is subject to a cap of $23.00 per share and a floor of $17.00 per share. In addition, Trilogy Equity Partners, led by wireless veteran John Stanton, will invest directly in the new Clearwire's common stock.

Upon completion of the proposed transaction, Sprint will own the largest stake in the new company with approximately 51 percent equity ownership on a fully diluted basis assuming an investment price of $20.00 per share. The existing Clearwire shareholders will own approximately 27 percent and the new strategic investors, as a group, will be acquiring approximately 22 percent for their investment of $3.2 billion, both on a fully diluted basis assuming an investment price of $20.00 per share.

Source: Intel

[panchoman]

hmmm very very interesting.. i just wish that no one company (sprint) had the control over the company..

[DanishDevil]

How the eff does Sprint have the money for this? 51%? They suck! Probably from Nextel...

This is intense...

[Ehstii]

this should be good...

but sprint? why couldnt someone else have come up with this?

[imperialreign]

I see . . . the internet Axis of Evil has finally formed . . . it will only be a matter of time before MS buddies up . . .

[panchoman]

Originally Posted by Ehstii

but sprint? why couldnt someone else have come up with this?

exactly my thoughts

[newconroer]

Wait, when did Sprint and Nextel merge.

My God, you poor people...

Don't you just love the impending globalization our world is facing. Ripe ripe ripe for the antichrist lol.

[jbunch07]

very interesting...but im confused just like everyone else as to why sprint!?!

[acousticlemur]

because sprint is the leader in mobile broadband, i would assume. i used to use a usb cable plugged into my phone to get online for years. much MUCH faster than dial up. or maybe they just came up with the idea first :P

[niko084]

Originally Posted by DanishDevil

How the eff does Sprint have the money for this? 51%? They suck! Probably from Nextel...

This is intense...

Sprint although is a joke in the wireless world, they are still a very powerful and rich company with massive amounts of credit.

[russianboy]

monopoly much?