Feeds

Teledesic's McCaw to pump $20m into Iridium

But a takeover has been rejected -- for now

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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. ®

New hybrid storage solutions

More from The Register

next story
Quit drooling, fanbois - haven't you SEEN what the iPhone 6 costs?
How keen will buyers be when exposed to the real price?
Ex-Autonomy execs: HP's latest wad blows apart fraud allegations
Top bods claim IT titan's latest court filing is smoking gun of 'reckless aggression'
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Elon Musk says Tesla's stock price is too high ... welp, NOT ANY MORE
As Nevada throws the SpaceX supremo a $1.25bn bone
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.