14 DAY TRIAL // On Tuesday, Clearwire Corporation announced plans to raise $1.564 billion in investments, so as to be able to continue the expansion of its 4G wireless network. According to the company, it has signed an agreement with Sprint Nextel Corporation, Comcast Corporation, Time Warner Cable Inc., Intel Corporation, Eagle River Holdings, LLC and Bright House Networks, LLC for the funds, which will be offered in exchange for newly issued shares that have been prices at $7.33 each.
“This additional level of strategic funding marks another important milestone in the progress of Clearwire, and will enable us to maintain our leadership and aggressive 4G WiMAX network build plans,” said Bill Morrow, CEO of Clearwire. “Today's news is also further validation of the importance of our 4G network to our strategic investors. We all benefit from this robust, all-IP, high-bandwidth network that delivers an unmatched combination of Internet speed and mobility.”
Clearwire also announced that the new round of equity financing would see as participants Sprint Nextel, which is committed to provide $1.176 billion, Comcast, which brings $196 million, Time Warner Cable with $103 million, Intel for $50 million, Eagle River for $20 million, and Bright House Networks for $19 million. The company expects to receive $1.057 billion in cash in the next five business days, and noted that $440 million in cash will be received before the end of the ongoing year. As for the remaining $66 million, Clearwire says Q1 2010 is the targeted time frame when the funding will be received.
“While we are very pleased to have every one of our investors, we are particularly pleased and honored that Sprint Nextel, Comcast, Time Warner Cable, Intel, Eagle River and Bright House Networks have decided to provide this additional round of strategic financing. Together, we share a common vision of providing consumers and businesses with a new category of Internet service capable of meeting the growing demand for mobile data,” Clearwire's CEO added.