Sprint and Clearwire to combine WiMAX businesses
Clearwire and Sprint Nextel 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 (through Intel Capital), Google, Comcast, Time Warner Cable, and Bright House Networks – have collectively agreed to invest US$3.2 billion into the new company. The investment by the five strategic investors will be based on a target price of US$20.00 per share of Clearwire's Common Stock, subject to a post-closing adjustment.
Upon completion of the proposed transaction, Sprint will own the largest stake in the new company with approximately 51% equity ownership on a fully diluted basis assuming an investment price of US$20.00 per share. The existing Clearwire shareholders will own approximately 27% and the new strategic investors, as a group, will be acquiring approximately 22% for their investment of US$3.2 billion, both on a fully diluted basis assuming an investment price of US$20.00 per share.
Sprint and Clearwire also announced a series of commercial agreements with the strategic investors, including 3G and 4G wholesale agreements.
The strategic investors are among the nation's leaders in communications technology, chipset development and Internet advertising, content and distribution. It is expected that the new Clearwire will have a time-to-market advantage over competitors in fourth generation services, supported by strong spectrum holdings and a national footprint. Further, it will build on the strong foundation of Clearwire's rapidly growing subscriber base of nearly 400,000 wireless broadband customers as of year-end 2007, as well as Sprint's continued XOHM WiMAX network build-out in certain markets throughout this year.
The new Clearwire expects to offer mobile wireless Internet services on a broad array of new devices that will be made possible by integrated WiMAX chipsets, scalable operating expenses and a commitment to an open architecture.
Mobile WiMAX is a standards-based wireless broadband technology designed to operate multiple times faster than today's 3G wireless networks. With embedded WiMAX chipsets in laptops, phones, PDAs, mobile Internet devices and consumer electronic equipment, mobile WiMAX technology is expected to allow users to wirelessly access a range of multi-media applications such as live videoconferencing, recorded video, games, large data files and more – anywhere in the network coverage area.
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 (through Intel Capital), Google, Comcast, Time Warner Cable, and Bright House Networks – have collectively agreed to invest US$3.2 billion into the new company. The investment by the five strategic investors will be based on a target price of US$20.00 per share of Clearwire's Common Stock, subject to a post-closing adjustment.
Upon completion of the proposed transaction, Sprint will own the largest stake in the new company with approximately 51% equity ownership on a fully diluted basis assuming an investment price of US$20.00 per share. The existing Clearwire shareholders will own approximately 27% and the new strategic investors, as a group, will be acquiring approximately 22% for their investment of US$3.2 billion, both on a fully diluted basis assuming an investment price of US$20.00 per share.
Sprint and Clearwire also announced a series of commercial agreements with the strategic investors, including 3G and 4G wholesale agreements.
The strategic investors are among the nation's leaders in communications technology, chipset development and Internet advertising, content and distribution. It is expected that the new Clearwire will have a time-to-market advantage over competitors in fourth generation services, supported by strong spectrum holdings and a national footprint. Further, it will build on the strong foundation of Clearwire's rapidly growing subscriber base of nearly 400,000 wireless broadband customers as of year-end 2007, as well as Sprint's continued XOHM WiMAX network build-out in certain markets throughout this year.
The new Clearwire expects to offer mobile wireless Internet services on a broad array of new devices that will be made possible by integrated WiMAX chipsets, scalable operating expenses and a commitment to an open architecture.
Mobile WiMAX is a standards-based wireless broadband technology designed to operate multiple times faster than today's 3G wireless networks. With embedded WiMAX chipsets in laptops, phones, PDAs, mobile Internet devices and consumer electronic equipment, mobile WiMAX technology is expected to allow users to wirelessly access a range of multi-media applications such as live videoconferencing, recorded video, games, large data files and more – anywhere in the network coverage area.
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