Sprint, Clearwire Deal May Be A Risky Investment

This morning, after the announcement from Softbank that it is in advanced talks to acquire a large stake in Sprint Nextel Corporation (NYSE:S), shares in both that firm and Clearwire Corporation (NASDAQ:CLWR) have spiraled upward in what can only be described as frenzied market action.

The price put on Sprint, according to this morning's reports, is $12.8 billion for an estimated 75% of the company. After today's dizzying rise, Spring Nextel Corporation is worth $17.33 billion in market capitalization. 75% of that number is just under $13 billion.

Along with the rise in...