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Clearwire up after Sprint acquisition news

Monday, 15 Oct 2012 | 9:14 AM ET

NEW YORK -- Shares of Clearwire jumped 12 percent in premarket trading Monday following news that the Japanese cell phone company Softbank Corp. is buying a majority stake in Sprint, which owns half of the company.

Softbank is buying 70 percent stake in Sprint Nextel Corp. for $20.1 billion.

Clearwire operates a wireless broadband network that Sprint resells as "Sprint 4G." Clearwire has struggled to become a viable standalone company, and it needs additional funding to upgrade its network.

That said, the Softbank deal does not require Sprint to take any action regarding Clearwire, according to a regulatory filing announcing the transaction on Monday.

Shares of Clearwire Corp. rose 28 cents to $2.60 before the market opened.

  Price   Change %Change
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CBV
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9984.T
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