Reston, Va. - Following months of negotiations, Sprint Nextel (NYSE: S) said on Wednesday that it will combine its WiMax business with that of Clearwire. The resulting $14.5 billion company, which will retain the name Clearwire, will focus on deploying the first nationwide mobile WiMAX network, which promises wireless speeds comparable to those of broadband. The companies also said they have landed $3.2 billion in investments toward the project from Intel Capital, Google (NASD: GOOG), Comcast (NASD: CMCSA), Time Warner Cable (NYSE: TWX) and Bright House Networks.

In addition, Trilogy Equity Partners, led by wireless veteran John Stanton, will invest directly in the new company.

The Wall Street Journal reported in March that the companies needed at least $3 billion to roll out the network, known as Xohm.

Following the investments, Sprint will retain a 51% stake in Clearwire, with existing Clearwire investors owning 27% and the new investors owning a combined 22%.

Dan Hesse, the president and CEO of Sprint Nextel, said that the new company "provides Sprint with additional financial flexibility and allows Sprint management to leverage and focus on our core business."

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