Clearwire cancels it’s IPO
I guess when you raise $900 million, you really don’t need to raise another $400 million via IPO.
The New York Times reported that Clearwire has cancelled it’s planned IPO to raise $400 million dollars after the recent investments by Intel and Motorola.
BeyondGenius speculates that companies only invest that much money in another company if they have a pretty good idea that things will be developing well. By well, we mean a Google WiMAX rollout.
For sure, this speculation could be wrong, but let’s take a closer look at Clearwire. The company offers WiMax service in 27 regions around the country, with about 18,000 subscribers in the United States and 11,500 in Belgium and Ireland. That’s 29,500 paying customers.
Craig McCaw owns 47 percent of Clearwire’s outstanding shares and controls 87 percent of the voting rights through a holding company.
The company has yet to turn a profit. Last year it reported a net loss of $140 million on revenue of $33.5 million in 2005. Wouldn’t you invest $900 million in them? That’s only about $30,000 per paying customer…
We would keep an eye on this company and its rollout of WiMAX services. They just could be the next big thing.
