Clearwire up after Sprint acquisition news
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.