AfterDawn: Tech news

Google takes 91 percent loss on its Clearwire share

Written by Andre Yoskowitz @ 24 Feb 2012 5:24 User comments (4)

Google takes 91 percent loss on its Clearwire share Google has announced today that it will take a huge loss on its stake in Clearwire, the wireless internet service provider.
The company purchased a $500 million stake in the company in 2008, after Sprint Nextel agreed to take over the WiMax operations of Clearwire. The deal was also backed by Comcast, Intel, Time Warner Cable and Bright House Networks. Intel was the primary backer of the failed standard.

Google will sell its 29 million shares at $1.60 each, taking back just $46 million of its $500 million investment. The company, in a filing with the SEC, says the shares will be offered to existing shareholders and then the public.

Although the move clearly seems like a major player abandoning ship, Google would only say "Google periodically rebalances its investments based on its goals and its evaluation of market conditions."

Although Clearwire ran out of money in 2010, Sprint saved the company by paying $1.6 billion to access the WiMAX service, used as 4G on the carrier, until 2015.

Clearwire's shares closed at $2.11 today, showing just how desperate Google is to be rid of them.

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4 user comments

124.2.2012 20:31

clear sucks anyway and yes I'm using it right now.

225.2.2012 11:16

I love how they word it. just say hey we fuc*ed up! and bought a shitty company. how did you even THINK that this clear company would go ANYWHERE lol. hell we could of told you that. next time u decide to purchase a huge wireless internet service provider, maybe you should as the general public first lol.

For Sale:

Parachute, Used Once, never opened small stain.
Best Offer!

325.2.2012 13:50

Originally posted by xaznboitx:
clear sucks anyway and yes I'm using it right now.
I live in an area with no cable and no satelite internet access and only very very slow DSL at outragious prices. Clear 4G wifi internet service and customer service has been outstanding.

425.2.2012 18:04

The problem with clear is it is overpriced compared to it competitors. Xfinity and Uverse also started offering wifi hotspots to compete with clear.

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