Clearwire Holders Okay Sprint Deal; Both Stock Tumble

Clearwire (CLWR) today announced that its holders have approved the planned combination of the company with Sprint ’s mobile WiMax business. The deal also includes a $3.2 billion investment in the combined company by Intel (INTC), Google (GOOG), Comcast (CMCSA), Time Warner (TWX), Bright House Networks and Trilogy Partners . The company said it lenders have approved an amendment to the company’s credit agreement to permit the deal to move forward. Clearwire said the deal, which already has FCC and Justice Department approval, should close before year end. So is this for some reason considered terrible news? Certainly, investors are showing serious disdain both for Clearwire and Sprint shares. Clearwire today is down $1.50, or 25.9%, to $4.30; Sprint is off 37 cents, or 20%, to $1.51. Since November 4, Clearwire is down 56% and Sprint is off 64%. (link)