Comcast in Holding Pattern with Clearwire Investments
Wednesday, Comcast’s Chief Financial Officer Michael Angelakis said that the cable giant is not likely to increase its stake in the wireless broadband provider. While Comcast has invested in Clearwire in the past and they own almost 9% of the company they’re not looking for more. The Wall Street Journal’s Digits blog brings us this brief bit of news,
…[T]ensions have recently flared over the strategic direction of Clearwire, leading to questions about the company’s next round of financing. “Clearwire has to figure this out,” said Angelakis at an investor conference in New York.
Sprint’s CFO said recently that Sprint would be unlikely to buy the remainder of Clearwire or look to control the company in the near term.
Sprint-Nextel owns almost 54% of Clearwire alongside Intel, Google and Time Warner Cable who have also invested with them. “The path that’s probably likely is that we’ll continue to infuse some equity (investments) over the coming years and maybe some way down the road to take control of it,” Robert Brust, Sprint-Nextel’s Chief Financial Officer, said during an investor conference. “An imminent move on that would just be very expensive.”
This all comes on the heels of Clearwire’s announcement in August releasing a new service model for their 4G WiMAX mobile-broadband model that included a pay-as-you-go service. Numerous other companies are rolling out their own 4G networks and services so investors, like Sprint, really want Clearwire to expand the geography of their 4G network in order to compete. Right now, the mobile-broadband provider has 4G available in some big cities like New York, Los Angeles, and San Francisco—but even its coverage there isn’t fully implemented.
This news from Comcast also comes as a little bit of surprise to the industry as the initial investment had been touted by the cable-media giant as vital to their growth plans (speaking to Clearwire’s 4G network.) Comcast launched their own mobile-broadband WiMAX service–rebranded from Clearwire–last year with High-Speed 2go. It looks like the wireless company’s current decisions are not sitting well with their investors and we may see a change in direction over the near future if they don’t want to alienate them.
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