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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.