Feeds

Teledesic's McCaw to pump $20m into Iridium

But a takeover has been rejected -- for now

  • alert
  • submit to reddit

Top three mobile application threats

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. ®

3 Big data security analytics techniques

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.