system in key markets across the U.S.—they used a provision of the agreement to take control of the company; hiring a new CEO, Leo J. Cyr, who ousted the entire management team, including Clearwire CEO Brian Nerney, while diluting the strength of the founders still on the Board of Directors. A holding company controlled by Craig McCaw, Flux LLC, acquired Clearwire Inc's then parent company, Clearwire Holdings, in March 2004. After assuming control, McCaw installed executives from McCaw Cellular in the key leadership positions at Clearwire Corp. On June 3, 2004, McCaw purchased Clearwire Inc. for an undisclosed amount and used its name and resources, as well as technology developed by another McCaw-owned company, NextNet Wireless Inc., to launch his latest effort. On October 26, 2004, Intel Corp. teamed up with McCaw to develop and deploy a technology for portable wireless Internet access. The partnership included an investment by Clearwire Corp. Clearwire grew from 1,000 customers in September 2004 to more than 443,000 customers by May 2008. Clearwire claimed in September 2006 that 20% of its markets had more than 10% penetration of households covered. Clearwire took a $900 million infusion of capital from Intel and Motorola in July 2006, shortly after pulling its initial public offering. Clearwire's equipment manufacturer Nextnet Wireless was sold to Motorola as part of the exchange. This investment by these two industry giants had been reported as an attempt to accelerate the development and deployment of WiMAX networks worldwide. An unspecified source claims that AT&T sold Clearwire a slice of 2.5 GHz spectrum for about $300 million. The spectrum covers markets in the southeast of the U.S. and was formerly owned by BellSouth. The spectrum solidifies Clearwire's position as the second largest holder of 2.5 GHz spectrum after Sprint Nextel. AT&T had to sell the spectrum as a condition of its merger with BellSouth. Clearwire and Sprint Nextel announced a partnership in July 2007 to accelerate deployment of WiMAX technology across the US. The deal was to include a swap of spectrum and markets between the two companies, as well as providing roaming capabilities for customers traveling between the companies' networks. The partnership was terminated at the end of 2007. In 2008, Sprint's new CEO Dan Hesse started serious discussions about forming a joint venture between the two companies in the hopes of bringing in outside funding from Google, Intel, and Best Buy. On March