updated 08:20 am EDT, Fri August 19, 2011
Sprint may acquire Clearwire for LTE expansion
Sprint may buy outstanding shares in Clearwire to build out its 4G LTE network more quickly, according to Bloomberg sources. Sprint is said to be in talks with cable companies include Comcast to raise the capital to buy out equity in Clearwire that it doesn't already own. Although a deal is not said to be imminent, Sprint, which is currently losing money, is keen to invest around $600 million to upgrade its network in order to become more competitive with Verizon and AT&T.
The cable companies are said to be interested in investing in LTE as it will help them better compete with AT&T and Verizon who have the advantage of being able to deliver services through a variety of means including landline, wireless, Internet and pay-television.
A number of different scenarios are being discussed as to how the interested parties can pool their resources to optimize their planned strategic alliance, with no one capital-funding model yet determined.
Neither company was willing to either deny or confirm that such talks are underway.