NEW YORK (AP) - Sprint is buying out the founder of Clearwire to gain majority control of the wireless network operator. The move follows the pledge by Japan's Softbank to infuse Sprint with cash by buying a majority stake in it.
Sprint Nextel Corp. says in a regulatory filing Thursday that it will pay wireless pioneer Craig McCaw and his holding company $100 million for a 5 percent stake in Clearwire, pushing Sprint's stake above 50 percent.
Clearwire has the right to use a large share of the nation's airwaves, but lacks the money to renovate and expand its network. Sprint has been struggling financially too, and hasn't been in a position to invest in Clearwire until Monday's announcement that Japanese cellphone company Softbank would buy 70 percent of Sprint for $20 billion.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Top Money Headlines
A consumer credit foundation is urging people to check for errors on their credit reports on a regular basis.