CORRECTED - Google says won't give Clearwire more financing

Mon Nov 9, 2009 12:20pm EST

(Corrects headline to say Google will NOT give Clearwire more financing)

* Will not give more financing

* To focus on helping it on product and strategy

* Clearwire shares up 5 pct, Google shares up 1.6 pct

NEW YORK, Nov 9 (Reuters) - Google Inc (GOOG.O) said on Monday that it could best help wireless service provider Clearwire Corp CLWR.O by cooperating on products and strategy rather than giving it more financial assistance.

Google is among several investors in Clearwire along with majority-owner Sprint Nextel (S.N), and chip giant Intel Corp (INTC.O) and cable providers such as Comcast Corp (CMCSA.O) and Time Warner Cable In (TWC.N).

The comment follows a report that Sprint is planning to help Clearwire narrow a funding gap with a $1 billion investment and the other partners, excluding Google, would give Clearwire another $500 million in funding.

Google said that it still supports Clearwire's efforts to build a high-speed wireless network based on an emerging technology known as WiMax.

"We have already made a significant financial investment, and at this point we think the best way we can continue to add value is through continued product and strategic cooperation," Google spokesman Andrew Pederson said in an email.

Clearwire shares were up 35 cents, or more than 5 percent, at $6.84 on the Nasdaq, where Google stock was up $8.92 or almost 2 percent at $560.02. (Reporting by Sinead Carew and Megan Davies; Editing by Steve Orlofsky)

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