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Sprint, Clearwire To Create New Mobile Broadband Co.

Sprint Nextel Corp. (S) and Clearwire Corp. (CLWR) Wednesday said they will merge 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 high-speed mobile WiMAX network.

According to CNN: Intel Corp. (INTC), Google Inc. (GOOG), Comcast Corp. (CMCSK), Time Warner Cable Inc. (TWC) and Bright House Networks will collectively invest $3.2 billion in the new company, based on a target price of $20 a share of Clearwire's common stock, subject to a post-closing adjustment.

Clearwire shares closed at $16.46 on Tuesday.

Trilogy Equity Partners will invest directly in the new Clearwire's common stock.

After the deal, Sprint will hold around 51% of the firm, existing Clearwire shareholders will own 27% and the new investors will hold 22%.

Sprint and Clearwire also announced a series of commercial agreements with the strategic investors, including 3G and 4G wholesale agreements.