WiMax $3.2B Deal Closes Merging Clearwire And Sprint With Outside Partners -Google, Intel, Comcast, Time Warner

Clearwire and Sprint Nextel confirmed this morning that they have a definitive agreement to combine their WiMax wireless broadband businesses to form a new company with sufficient resources to be a competitive force going forward. The $14.5 billion deal has a little bit of everything with outside investments coming from a wide-range of companies and pacts to use each other’s products for services and devices that promise consumers the future—connecting to the Internet at high speeds while on the go. Outside investment totaling $3.2 billion comes from Intel (NSDQ: INTC), Google (NSDQ: GOOG), Comcast (NSDQ: CMCSA), Time Warner (NYSE: TWX) Cable and Bright House Networks and Trilogy Equity Partners. In addition to their investments, the companies will be involved commercially as well. Intel, of course, will embed WiMax chips into laptops and mobile devices, while Google will offer a range of internet and advertising applications, including search, its Android operating system and other services. The far-reaching commercial arrangements for each company involved include:
-- Intel: Will embed WiMax chips into laptops and other mobile devices; has the option to enter into 3G and 4G wholesale agreements with Clearwire and Sprint, but has no plans to do so. Its investment comes to $1 billion.
-- Google: Will develop Internet and advertising services and applications for WiMax devices; will be the default search provider and the preferred application provider for Clearwire’s new retail product; will supply its Android operating system for future Clearwire voice and data devices. Will be the default provider of web and local search for Sprint’s mobile phone services, and be able to preload several Google services, including Google Maps for mobile, Gmail and YouTube, onto select Sprint mobile phones; has the option to enter into 3G and 4G wholesale agreements with Clearwire and Sprint, but has no current plans to do so. Google’s stake is for $500 million.
-- Sprint: Will enter a wholesale agreement with Clearwire to provide WiMax.
-- Cable: Comcast ($1.05 billion), Time Warner Cable (NYSE: TWC) ($550 million), and Bright House Networks ($100 million) will enter into wholesale agreements with Clearwire, to become mobile WiMax providers, and will enter into 3G wholesale agreements with Sprint to offer Sprint’s wireless voice and data services in a bundle.
http://www.moconews.net/entry/419-breaking-massive-wimax-deal-closes-merging-clearwire-and-sprint-with-ou/

http://www.infoworld.com/article/08/05/07/Sprint-and-Clearwire-seal-14-billion-WiMax-deal_1.html