AFI BLOG: Media and Technology

Sprint Revives Talks With Clearwire Over Forming WiMax Joint Venture - The Wall Street Journal

Sprint Nextel Corp. has revived serious discussions with startup Clearwire Corp. to form a joint venture that would bring in outside funding from the likes of Intel Corp., Google Inc. and retailer Best Buy Co. to build a high-speed wireless network using WiMax technology, according to people familiar with the matter.

The plan could dramatically lower the price tag of Sprint’s WiMax project and allow newly installed Chief Executive Officer Dan Hesse to focus on fixing the company’s core cellphone business — answering two concerns Sprint investors have had.

There’s no guarantee the joint venture will materialize, or that Sprint and Clearwire will secure external funding, despite the advanced discussions. Last year Sprint and Clearwire tentatively agreed to a more modest cost-sharing partnership on WiMax, but the deal was scrapped in November, partly because Sprint was operating without a CEO at the time and was reluctant to make any major moves. Since then, the two sides have re-engaged on a more ambitious plan that would involve spinning off Sprint’s WiMax unit and merging it with Clearwire, people familiar with the matter say.

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