Sprint, Nextel Agree to $35bn Merger

Despite recent reports that Verizon was interested in making a bid for Sprint's wireless unit, Nextel and Sprint have officially announced plans to merge companies. The new company, which will be the third largest U.S. wireless carrier, will eventually migrate Nextel users off its iDEN network onto Sprint's CDMA infrastructure.

In the deal, which closely mirrors earlier speculation, Nextel shareholders will receive 1.3 shares of Sprint stock, along with a small cash payout not to exceed $2.8 billion in total. Sprint CEO Gary Forsee will stay on as Chief Executive of Sprint Nextel, while Nextel CEO Timothy Donahue becomes Executive Chairman.