Feeds

Craig McCaw cuts losses and abandons Iridium

U-turn leaves troubled satellite venture up a certain creek without a certain implement

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Teledesic boss Craig McCaw's investment operation, Eagle River, on Friday abandoned its plan to invest in ailing satellite comms company Iridium. Eagle River had been pursuing a stake in Iridium for some time. After a last minute change of plan, Eagle River recently said it would pump $5 million, in co-operation with Motorola, Iridium's biggest shareholder into the troubled cellphone-by-satellite operation. This sum came in place of an earlier scheme to invest $21 million from Eagle River alone. The US bankruptcy court approved that $5 million cash injection on 17 February, the sum being earmarked for keeping Iridium operational until 6 March. Eagle River then began a due diligence investigation, and it's hard not to conclude that it came across something about that it didn't like. Eagle River president Dennis Weibling said: "After careful examination of Iridium's technologies, we determined that there are closer synergies between ICO and Teledesic and the services they will provide customers worldwide." ICO and Teledesic are both now focused on providing broadband networking facilities via satellite - or, rather, that was always Teledesic's focus, but ICO changed from telecoms to data soon after Iridium went into Chapter 11 bankruptcy protection. ICO has yet to launch its satellites, which are now being converted from voice-oriented comms to data networking. By the time they're launched, they are unlikely to bear the ICO name, the company having been fully subsumed into Teledesic by then. The point here is that Eagle River always knew there would be problems integrating Iridium technology into that of Teledesic, Iridium's satellite network being already in orbit. It seems unlikely that Eagle River would have embarked on negotiations with Iridium if it felt those problems could not be overcome or successfully operated alongside but separate from the Teledesic network. That suggests, the issue with Iridium may be financial, possibly that the company requires rather more money than even loadsamoney McCaw can find to keep it going. In short, it's a liability not an asset. Surely, the decision to abandon the attempt to take Iridium over can't be because Eagle River can't get a deal it's happy with? After all, Iridium's in no position to bargain. ®

Top 5 reasons to deploy VMware with Tegile

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
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
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.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.