Feeds

Teledesic's McCaw to pump $20m into Iridium

But a takeover has been rejected -- for now

  • alert
  • submit to reddit

Mobile application security vulnerability report

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. ®

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

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
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
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
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.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.