Clearwire Corporation(NASDAQ:CLWR)’s shares are among the big gainers and volume buzzers on Monday as the stock soared 25% to $2.90 on news that Japanese cell phone company Softbank Corp. has finally agreed to buy a majority stake in Sprint Nextel Corporation(NYSE:S).
Shares of CLWR have been popping up since last week when a report revealed that Sprint may be acquired by Softbank. CLWR is half owned by Sprint.
Sprint rely on Clearwire’s LTE technology, which couldn’t be successful unless CLWR found Sprint, which Sprint resells as "Sprint 4G." Clearwire has struggled to become a viable standalone company, and it needs additional funding to upgrade its network.
That said, the Softbank deal does not require Sprint to take any action regarding Clearwire, according to a regulatory filing announcing the transaction on Monday.
Shares of CLWR have soared 122% in the past on week and made a new 52-week high of $2.95 this morning with more than 27 million shares have traded within first 30 minutes of trading. Shares of Sprint also rose 1.50%.