Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • Cloud
    • Mobile

    Google Sells Clearwire Stake at a Big Loss

    By
    Clint Boulton
    -
    February 25, 2012
    Share
    Facebook
    Twitter
    Linkedin

      Google (NASDAQ:GOOG) is selling its 6.5 percent stake in struggling mobile broadband concern Clearwire (NASDAQ:CLWR) for $47.1 million, roughly a $453 million markdown on its $500 million investment in the struggling wireless concern.

      The search giant revealed the offloading, which values Clearwire at only $1.60 a share, in a filing with the Securities and Exchange Commission. The company explained that it sometimes “rebalances its investments based on its goals and its evaluation of market conditions.”

      Google plans to offer its 29.4 million shares to other Clearwire investors starting Monday before selling them the following week to anyone who’d like to buy them.

      Google plunked down $500 million for Clearwire in May 2008, joining Intel, Comcast, Time Warner Cable and Bright House Networks in investing $3.2 billion for the union of Sprint’s (NYSE:S) and Clearwire’s wireless broadband businesses into a new wireless communications company.

      Clearwire created the first nationwide mobile 4G WiMax network, bringing speedy wireless Internet access to consumers, businesses, schools and government agencies in the United States.

      WiMax pipes data much faster than 3G wireless networks, allowing users to consume multimedia and other bandwidth-intensive content from laptops, smart phones and consumer electronics devices.

      Sprint, which relies on Clearwire’s 4G technology to power its phones and tablet computers, has a 49 percent stake in the venture.

      The market for WiMAX never matured and fell by the wayside as more robust 4G Long-Term Evolution (LTE) networks emerged from Verizon Wireless and AT&T (NYSE:T). T-Mobile uses a 4G technology called HSPA+.

      With few takers for its technology, Clearwire has hemorrhaged cash the last four years and said recently that it may need to raise more money to fund its operations beyond 2012. Reliant on Clearwire’s technology, Sprint has supported Clearwire throughout its dark time.

      Clearwire, which recently secured $200 million in financing, wants to spend $600 million to build out its own LTE network.

      Interestingly, Google became the default search provider and preferred application provider for Clearwire’s new retail product and the default provider of Web and local search for mobile phones from Sprint, which preloads Google Maps for Mobile, Gmail and YouTube.

      Google retains that deal with Sprint.

      Clint Boulton
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×