Feeds

Motorola demands help keeping Iridium in orbit

Issues stern ultimatum to fellow investors

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Motorola yesterday issued an ultimatum to fellow investors in the troubled satellite-based cellphone service, Iridium: start supporting the company, or it will pull the plug on its own extra financial support. Issued alongside Motorola's Q2 results, the statement said the company "will not provide any further support beyond existing contractual commitments unless there is substantial participation in the Iridium restructuring from all parties with significant financial interest [in it]". Motorola's concerns are understandable: it formed Iridium in the first place, now owns 18 per cent of the company, but, more importantly, has guaranteed a good proportion of the satellite operation's debt. However, as Iridium struggles to stay in orbit, largely thanks to poor marketing and over-priced airtime and handset products, its backers have become increasingly worried that the company has little time left to it. Certainly if Motorola cut back its support, Iridium would have very real problems indeed, so presumably its tactics here are to force other investors, including Lockheed Marting and Raytheon, to cough up some extra cash of their own -- or face their investment going down the tubes. Motorola continues to defer recording the money it makes from its operations and maintenance contract with Iridium, and it will be interesting to see to what extent that covers the cost of Motorola's support for the company. This quarter it recorded a $126 million charge to write down the value of its Iridium bonds, and predicted other charges next quarter. These coming costs are likely to be significant, and balanced only by the sale of "several businesses and assets", the company said. ® See also Teledesic confirms Motorola support

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.