Clearwire to offer $300m in stock to fund LTE deployment
updated 11:20 pm EST, Mon December 5, 2011
Company continues funding drive
Clearwire is reportedly set to provide $300 million of its Class A stock as a public offering, in an attempt to fetch additional funding for the company's LTE deployment plans. The WiMAX provider is also said to be leaving the door open, as a 30-day option, for its underwriters to purchase an additional $45 million in Class A shares.
The move follows a recent financing agreement with majority owner Sprint, despite what appeared to be an ongoing dispute between both companies. Sprint promised nearly $1 billion in additional capital to pay for WiMAX service, while committing to nearly $700 million in additional funds if other conditions are met in the future. Approximately $347 million of the additional financing from Sprint hinges on Clearwire's ability to raise funds from outside sources.
Both Sprint and Clearwire have acknowledged plans to deploy LTE networks, following in line with Verizon and AT&T. Transitioning from WiMAX to LTE is expected to help the companies compete in the evolving 4G market. [via ZDNet]
