Feeds

Teledesic's McCaw to pump $20m into Iridium

But a takeover has been rejected -- for now

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Iridium looks set to receive the long-anticipated cash injection from satellite comms entrepreneur Craig McCaw this week, according to the New York Times. The investment will run to at least $20 million, the paper reckons. This first payment represents little more than the what the loss-making and creditor-protected (via Chapter 11) Iridium needs to tide itself over for a couple of months. Back in December its biggest investor, Motorola, in conjunction with others also pumped in $20 million to keep Iridium operational. Further funding is likely -- not to say vital -- since many of Iridium's original investors seem unwilling to fund the debt-ridden 'mobile phone by satellite' company further. However, according to sources close to the negotiations between McCaw and Iridium, cited by the NYT, the extra cash is unlikely to buy the entrepreneur control of the company, as his massive investment in ICO Global Communications, an erstwhile Iridium competitor, did late last year. McCaw, who already runs satellite-based broadband networking operation Teledesic, is said to have offered $600 million to take over Iridium. That plan fell through in favour of the $20 million interim financing deal. If McCaw does gain control of Iridium, that will put him in charge of the three big satellite networking ventures: Teledesic, ICO (which is now recasting itself as a Teledesic competitor rather than an Iridium-style mobile comms company) and Iridium itself. Teledesic is in the process of developing and launching its high-speed 'Internet in the sky' system. ICO has yet to launch any satellites, which are now being converted from phone systems to Net access nodes. Iridium has 66 cellphone satellites in orbit. The logic behind McCaw's moves is clear: linking the three companies either by broad coalition or merger strengthens not only the businesses themselves but the whole satellite sector, an area in which McCaw has made considerable investments. The $20 million payment will have to be approved by a federal bankruptcy judge, but since McCaw's successful investments in ICO went through judicial review the Iridium deal seems unlikely to be blocked. ®

Remote control for virtualized desktops

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.