Sprint And Clearwire Scrap WiMax Partnership

Sprint (NYSE: S) and Clearwire have called off their joint project to build a WiMax network, with the complexities of the deal and the departure of Sprint CEO Gary Forsee making it too difficult to reach a pact according to the Wall Street Journal. “In recent weeks, Sprint’s board considered a variety of options with respect to the Clearwire partnership, including the idea of spinning off Sprint’s WiMax unit and merging it with Clearwire or bringing in a consortium of strategic investors to help finance the project. Any significant transaction would likely have to wait for Sprint to hire a new CEO, people familiar with the matter say.” It’s seen as a blow to Clearwire, and also indicates the problem Sprint has with its planned WiMax network — the company wants it, but the next CEO may scale back the plans considerably.

Here is the official Sprint release.