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    Google to sell Clearwire stake at 94 percent loss

    NEW YORK (AP) — Google Inc. on Friday said it will sell its stake in Clearwire Corp., the struggling operator of a wireless data network. The search company is taking a 94 percent loss on the originally $500 million investment made in 2008.

    Google said in a regulatory filing that it's seeking to sell its stake starting Monday for $1.60 per share, or $47 million total.

    Clearwire shares fell 16 cents, or 6.8 percent, to close Friday at $2.11.

    Google was part of a consortium that included cable companies and equipment provider Intel Corp. that injected $3.2 billion into Clearwire when it merged with a Sprint Nextel Corp. unit in 2008. The hope was that Clearwire would be a powerful competitor to the established cellphone companies, providing fast wireless data at low prices.

    But technical challenges and a lack of scale has sidelined Kirkland, Wash.-based Clearwire. It's using a wireless technology that once looked promising, but has been eschewed by cellphone companies. It now plans to catch up by adopting the industry standard "LTE" technology, but it needs more funding to make the switch.

    Google didn't specify why it is selling its stake. It wrote down the value of its investment in 2009 and 2011.

    Sprint owns the majority of Clearwire, but doesn't have voting control. Comcast Corp. and Time Warner Cable Inc. are other big shareholders, with original investments of $1.05 billion and $650 million. Intel invested $1 billion.

    Google shares gained $3.79 to close at $609.90.

     

    18 comments

    • jared  •  Tacoma, Washington  •  3 mths ago
      I had clearwire for a year. Worst service ever! It was so slow and it always randomly shut down and wouldn't connect to the internet for hours. SOOO glad I switched.
      • frosty 3 mths ago
        what did you switch to?
      • jared 3 mths ago
        @Frosty Comcast XFinity, I hardly ever have any lag. I love it
    • CapitalistNature  •  Las Vegas, Nevada  •  3 mths ago
      Clear sucks! With an unlimited plan you still get managed and your bandwidth plummets. Horrible customer service. They never do what they say.
    • William S  •  Las Vegas, Nevada  •  3 mths ago
      Clearwire, what a bunch of drunks!
    • The Swami  •  3 mths ago
      This does not bode well for Sprint's 4G efforts. First, LightSquared got rejected by the FCC in their effort to build an LTE network--something which Sprint had counted on in their Network Vision strategy (Sprint was going to be a distributor of LightSquared). Now Clearwire is losing allies at a time when they are trying to convert from WiMAX to TD-LTE--and Sprint needs Clearwire to help increase their 4G capacity.
    • jonathan  •  Stockton, California  •  3 mths ago
      Clearwire sucks... i can see why.... i was stuck with them for 2 years...every night around 7pm was as slow as dial up!
    • Ender  •  Burlington, Washington  •  3 mths ago
      Trouble is, it just doesn't work, not yet anyway. To many dropouts.
    • d k  •  Columbus, Ohio  •  2 mths ago
      The author got the loss percent wrong. Since when is 94% loss of $500 million $47 million? They are selling it for $47,000,000 so they are selling it at a 90.6% loss.
    • somitcw  •  2 mths ago
      I bought into ClearWire when they had 3G unlimited guaranteed for life for USD30 per month.
      When they forced me to upgrade to 4G, they forced a doubling of my band-width. They then sent two notices back to back that said that I exceeded the aggregated data rate that they wanted over a two week period which somehow caused congestion, and that on the third notice, my account would be terminated. They would not give a data rate that I was allowed so I had no way to know if I could down load one movie per day or per month. If anyone doesn't understand, it is not the person driving across country that causes rush hour congestion, it is the traffic speed and infrastructure. Both of which only the ISP can control. Verizon understands this and gives everyone a range of band-widths and they can dynamically adjust if needed to avoid congestion. Too bad that Clear doesn't have management and technicians that can understand how a network works.
    • Chuck Anderson  •  La Conner, Washington  •  3 mths ago
      Cut your losses and run. Worst net provider ever. Had better service with a 56k modem.
    • A Yahoo! User  •  Irvine, California  •  3 mths ago
      i could tell you why, if they sell it, they can get a tax credit. thus lowering there tax rate
      • CapitalistNature 3 mths ago
        What's new, you file it as a loss and get to claim it. It in no ways lower your rate, you just claim the loss.
      • John 3 mths ago
        And in this case, there is clearly a loss.
    • stillplayingpsolol  •  3 mths ago
      The biggest problem was when they wanted to pass a bill to monitor and regulate the internet with verizon, sprint, and clearwire. They wanted a tiered internet where you paid a certain amount per month depending on the kind of content you want. Email? $15, Surfing on basic internet full of ads? $15 more. Video subscriptions like youtube, hulu and others? another $15. I'm glad this just went off on the back burner and never passed
    • frosty  •  Houston, Texas  •  3 mths ago
      Just did a bandwidth check and found that Clear is 13 times slower than my cell phone hotspot.
      about 201 kbs vs 2626 kbs. Should have done this test sooner. Adios Clear. $40 not well spent.
    • frosty  •  Houston, Texas  •  3 mths ago
      Clear is supposed to be 4G and fast, but I have my doubts. Every Yahoo news item that has a video, seems I can only get the first 10 secs, then suddenly stops. Never fails for the past year. When I use my cell phone to generate a hot spot at 4G, I can then see the news video at normal speed without interruption. I'm about ready to cancel Clear.
    • Anthony S  •  Philadelphia, Pennsylvania  •  3 mths ago
      And I sold my google shares @ $350.00.......
      • stillplayingpsolol 3 mths ago
        Idiot, they are worth almost double that now and will keep increasing for the next 10-years.
      • Adalid 3 mths ago
        wow really you should go and get punched by a gorilla
    • Dave7922  •  Tampa, Florida  •  2 mths ago
      Runs pretty good for me. No prob w/downloads; a little slow w/uploads. Service lockouts three times in the last year. One was a car into a service pole. No complaints. Better than verizon, sprint, att.
    • Corey  •  3 mths ago
      Clear and WiMax are a lost cause. I stated back when LTE was just an idea that if Clear dumped WiMax in favor of LTE that Google would walk. I was with a company that we rented the USB devices for conventions it was a good deal, but Clear has problems. In Vegas they did not know how to stop the signal without large buildings, the signal just decimated. In Chicago they did not know how to get around all the bug buildings. They continued to screw the customers they already had to try and capture customers they hadn't #$%$ off yet.
      • Logic 3 mths ago
        "bug buildings"? Are those a Roach Motels??
    • Adalid  •  3 mths ago
      clear wire is pretty good here in chicago
      on a slow day i drop 2 to 3 mbs
      almost everynight i drop about 10 to 15mbs
    • Farm  •  3 mths ago
      My service from Clearwire was not bad. I drove all over with internet connection...in my car! I liked it. I thought the company had legs, especially with companies like At&t
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