Clearwire Cash Pinch Crushes Shares
Updated with Sprint's plan to avoid impact from a potential Clearwire collapse.
NEW YORK (TheStreet) -- Clearwire (CLWR) has failed to get its partners Sprint (S), Comcast (CMCSA), TimeWarner Cable (TWC), Intel (INTC) and Google (GOOG) to invest more money in its network expansion bid and now says it is cutting staff, delaying new market launches and looking for alternate sources of funding.
With a 54% stake in Clearwire, Sprint shares took a 3% hit on concerns that if Clearwire goes belly up, Sprint's standing with its lenders may suffer. As a result, Sprint indicated in a federal filing Friday that it could "take certain actions, at its own discretion and control, which would eliminate the potential for Clearwire to be considered a subsidiary of Sprint."
You sort of knew this day was coming for Clearwire.
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