Thursday, October 18, 2012

Sprint buys majority control of Clearwire

Recently Softbank purchased a majority stake and now Sprint is using some of that money to purchase back their majority stake in Clearwire. In a regulatory filing Sprint will pay wireless pioneer Craig McCaw and his holding company $100 million for a 5 percent stake in Clearwire pushing their voting stake to 53 percent. Previously both Sprint and Clearwire had struggled financially and Softbank’s $20.1 billion investment will give them the capital to invest more into Network Vision and their 4G LTE rollout. Sprint and Clearwire have had a rocky relationship with them gaining a stake over 50 percent back in 2008 only to let it slip earlier this year after Clearwire issued more shares to raise capital.