DONE DEAL: Sprint Nextel, Clearwire re-merge WiMAX business, bring new investments into operations

Following a rash of rumors earlier this week, and an aborted attempt last year, Sprint Nextel Corp. and Clearwire Corp. said they were going to again combine their WiMAX operations in an attempt to launch a nationwide network. Unlike the last go around, this time the two telecom companies are bringing more cash to the table with $3.2 billion in investments from Intel Corp., Google Inc., Time Warner Cable, Comcast Corp. and Bright House Networks.
The new operation will operate under the Clearwire brand and be headed by current Clearwire CEO Benjamin Wolff as the new entity’s CEO. Current Sprint Nextel CTO Barry West will serve as the company’s president. The “new” Clearwire will have a value of approximately $14.5 billion and will trade under Clearwire’s current “CLWR” ticker symbol.
Sprint Nextel will retain a 51% stake in the new venture through the inclusion of its entire 2.5 GHz spectrum portfolio and WiMAX-related assets that works out to a combined value of $7.4 billion. Sprint Nextel will also provide seven of the 13 members to the board of directors.
Clearwire will own approximately 27% of the venture valued at $3.9 billon and with the remaining investment partners controlling the other 22% of the operations. Clearwire’s founder and telecom veteran Craig McCaw is expected to serve as non-executive chairman of the board, while the remaining board members will include Sprint Nextel’s president and CEO Dan Hesse; Comcast Chairman and CEO Brian Roberts; Time Warner Cable President and CEO Glenn Britt; and former chairman and CEO of VoiceStream Wireless Corp. and Western Wireless Corp. John Stanton, who is currently chairman and CEO of Trilogy Equity Partners.
The “new” Clearwire said it plans to cover between 120 million and 140 million potential customers by the end of 2010.