Clearwire Corporation has closed a deal with their majority owner and biggest customer, Sprint Nextel to resolve a protracted battle which incidentally had threatened this high-speed wireless provider into bankruptcy.
This situation was getting very ugly for the company but now this deal resolved a very complicated entanglement threatening the US wireless industry.
Sprint is dependent on the Clearwire provided network for "high-speed wireless services"; in exchange Clearwire gets a good amount of funding from Sprint.
There were few complications and dead lock between these companies due to various issues like business strategies, financial commitments as well as service deals from last two years.
The latest deal will provide Clearwire $ 1.6 billion from Sprint as a fee of network and other sorts of investments.
Incidentally, on the same day of the deal, Clearwire was to make $237 million interest payment which was the main reason to worry for the company. However, the payments have been cleared on Thursday, as reported by the Wall Street Journal.
About the closing of the new deal, Sprint chief financial officer, Joe Enteneuer said, "We just forged a whole new relationship with these guys."