Google Selling Stake In Clearwire For $47 Million
In documents filed with the SEC, Google has revealed that they will be selling their entire stake in Clearwire Corporation. Google spent $500 million to acquire a 6.5% stake in Clearwire back in 2008. Google is selling their stake for $47 million. What a terrible investment.
Clearwire’s wireless broadband business was built based on the premise that WiMAX would do very well in the U.S. However that forecast did not work out too well. Now every major carrier including Sprint is in the process of switching to LTE. Sprint is Clearwire’s largest shareholder.
Google’s documents indicate that they are exiting from Clearwire to rebalance their portfolio of investments. However there is speculation that the company believes Clearwire will sink in their pile of debt and Google wants to get out while they can.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry