Google takes a bath on Clearwire investment, loses $433.5 million
largest shareholder in Clearwire and owns 54% of the company. In recent months the carrier added $331.4 million of additional funds as part of a round of financing that raised $1.1 billion for Clearwire. Despite raising all of that cash, Clearwire says it will last until the end of this year and will have to raise more funds after that. The problem is that the company is not generating positive cash flow and will remain in a drawdown position over the next 12 months.
source: WSJ via FierceWireless
1. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)
clearwire is being investigated by the better business bureau for bait and switch. i think taking the loss is worth distancing themselves from clearwire.
3. cepcamba (Posts: 717; Member since: 27 Feb 2012)
Thumbs up. You beat me by a minute. But basically the same thought.
5. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)
have you read these?
clearwire is a joke. they advertise unlimited 4g, but they throttle down to .2mbps down.
6. cepcamba (Posts: 717; Member since: 27 Feb 2012)
They're not only throttling speeds they also modify TOS for consumers to reflect their new policies. They have a ton of issues actually. If you ask me it all boils down to false advertisement.
7. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)
apparently they have double billed and it is routine for customer service to take CC info and charge it before revealing the amount that is going to be charged.
from the reports the CS is a joke. basically just telling you to reposition/restart your modem and call back later, so that they can tell you to restart your modem again.
all of those reports point towards horrible CS, horrible billing dept, horrible dl speeds, throttling without any specific cap.
good move google.
2. cepcamba (Posts: 717; Member since: 27 Feb 2012)
Google is seeing their Clearwire investment as a falling property. With other networks getting messed up (rumored) because of it, Google might be avoiding a possible law suit that can make their share value even less.
4. itiswhatitis (Posts: 422; Member since: 23 Jan 2012)
They're no fools, i believe they know what they're doing!!
8. -box- (Posts: 3819; Member since: 04 Jan 2012)
In short, Sprint and its associates continue down their losing path... and no one is surprised
9. lsutigers (Posts: 739; Member since: 08 Mar 2009)
Im not aware of the Clearwire throttling issues but my Sprint 4G (which runs on the same network) is definitely not throttled. I consistently average 8-10mbps.