KANSAS CITY, Mo. — Clearwire and Sprint Nextel said Wednesday they will combine their wireless-broadband units to create a $14.55 billion communications company.
The new company, which will retain Clearwire’s name, will continue developing a mobile network based on WiMax technology, which promises faster speeds than the latest cellular networks for movies, games and other data services.
A group of outside investors, including Intel Corp., Google Inc., Comcast Corp., Time Warner Cable Inc. and Bright House Networks, will kick in $3.2 billion for the new company. The investment is based on a target price of $20 per Clearwire share and will give the companies a 22 percent stake in the new venture.
Clearwire, a Kirkland, Wash.-based startup founded by cellular pioneer Craig McCaw, will also receive an investment from Trilogy Equity Partners, led by wireless veteran John Stanton.
Sprint Nextel Corp., based in Overland Park, Kan., will be majority owner with a 51 percent equity stake, while existing Clearwire Corp. shareholders will receive about a 27 percent interest.
The new company is looking for a U.S. network deployment reaching 120 million to 140 million people by the end of 2010.
Company officials said they’ll need up to $2.3 billion more in funding by getting additional investors or borrowing. Both companies characterized their joint venture as a way to speed along development of WiMax, which could eventually compete with fixed-line broadband.
