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What: Shares of Clearwire were cleared for takeoff today, up by 15% at the high, on reports that Sprint Nextel is actively considering buying the rest of the company.
So what: Sprint already owns 51% of Clearwire, but despite that majority ownership is unable to exert control over key strategic decisions. CNBC said that a deal could happen by the end of the year and Clearwire could be sold for greater than $3 per share.
Now what: Talk of Sprint acquiring the rest of Clearwire has persisted for ages, as it would give Sprint additional spectrum holdings that would make it more competitive with its larger rivals. With the Softbank deal that's currently pending, Sprint would have more funds at its disposal to expand its network, as well as potentially acquire Clearwire. This isn't the first time investors have heard these rumors before, and it won't be the last.
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The article Why Clearwire Shares Were Cleared for Takeoff originally appeared on Fool.com.
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