Sprint Nextel will spin off its “Xohm” WiMax unit into a JV with Clearwire after all, The Street.com’s Scott Moritz reports, citing anonymous sources. He says Intel Capital will chip in $2 billion into the deal.
This looks like a win-win-win for everyone involved. Sprint’s new CEO Dan Hesse can focus on fixing the struggling wireless carrier’s existing business, Clearwire (CLWR) can buddy up with Sprint (S) instead of competing with it, and Intel (INTC) will make sure the network gets off the ground — essential if it hopes to sell any significant volume of WiMax chips.
Unclear how this affects the service’s rollout timeline — a Sprint exec said this week that it will probably miss its goal of building out the next-gen wireless network to reach 100 million people by the end of the year.
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