Sprint Nextel, Clearwire Near Pact: Report

Sprint Nextel (S Quote) has reached a deal to combine its wireless broadband division with Clearwire (CLWR Quote), according to a published report Tuesday.

The Wall Street Journal said the companies will get investments of roughly $1 billion each from Comcast (CMCSA Quote) and Intel (INTC Quote), about $550 million from Time Warner Cable (TWC Quote) and around $500 million from Google (GOOG Quote).

A formal announcement could come as early as Wednesday, the report said, citing people would had knowledge of the matter.

All told, the new firm, which would offer fast wireless Internet access for cell phones and laptop computers, would be valued at more than $12 billion, the report said. A Sprint representative said it was company policy not to comment on rumors or speculation.

Shares of Sprint were gaining 4.2% to $9.58 in late trading. Clearwire was surging 12.4% to $18.50.