Shares of Clearwire Corporation (CLWR) are currently down 9.07% at $4.82 per share during Wednesday afternoon trading. Weakness being attributed to a Bloomberg report that says Sprint Nextel Corp. (S) and Philip Falcone’s LightSquared Inc. wireless venture may be in talks over network deal.
“LightSquared is in discussions to use Sprint Nextel Corp.’s cell sites and equipment to help build out its network, three people familiar with the talks said.
The deal would allow LightSquared to roll out its network more quickly and at lower cost, said the people, who declined to be identified because the talks aren’t public. Sprint’s plan to spend $5 billion in infrastructure upgrades would leave it with extra capacity it can offer to LightSquared, the people said.”
LightSquared, backed by billionaire Falcone’s Harbinger Capital Partners hedge fund, is seeking to compete with AT&T Inc. (T), Verizon Wireless (VZ) and Clearwire Corp. in selling so-called fourth-generation [4G] of cellular wireless standards that offers faster Internet browsing.