FCC Approves Sprint, SoftBank, Clearwire Merger

SoftBank Corp.'s (9984.TO) three-way merger with Sprint Nextel Corp. (S) and Clearwire Corp. (CLWR) won final approval from U.S. regulators Wednesday as it received unanimous backing from the Federal Communications Commission, people familiar with the matter said.

The government approval was the final hurdle Softbank needed to clear before closing its deal to acquire control of Sprint.

The deal means Sprint, America's No. 3 wireless carrier, will receive a multi-billion injection of cash from Japan's SoftBank as part of the $21.6 billion acquisition.

At the same time, the FCC green-lighted Sprint's bid to buy out the rest of Clearwire, a struggling wireless operator that owns valuable swaths of airwaves seen as crucial to making the Sprint deal a success. Sprint already was the majority shareholder in Clearwire.

Sprint has been a second-tier U.S. wireless carrier that has languished for years, but its appeal has grown increasingly attractive as U.S. consumers show they are willing to spend more for wireless connectivity even as they watch their budgets.

SoftBank chairman Masayoshi Son wants to use Sprint to upend the U.S. wireless industry much in the same way he did in Japan with its acquisition of beleaguered carrier Vodafone Japan in 2006. Now, the maverick billionaire faces the daunting task of taking on the two giants in the U.S. industry, AT&T Inc. (T) and Verizon Wireless

U.S. national security and antitrust regulators have already cleared the deal. FCC approval had been expected in early July.

Sprint shareholders overwhelmingly approved SoftBank's acquisition last month after SoftBank sweetened its offer, fending off a competing bid from satellite TV provider Dish Network Corp. (DISH) and its founder, Charlie Ergen.

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