So what's up with Iridium? If McCaw isn't buying it, what's next? Anyone still holding this puppy? Anyone thinking of buying some?
>>Eagle River Chooses Not to Pursue Iridium Investment
Craig McCaw to Focus on Data-Centric ICO and Teledesic
BELLEVUE, Wash.? March 3, 2000 ? Eagle River Investments LLC, telecommunications pioneer Craig McCaw's investment management firm, today announced that it will no longer pursue an investment in Iridium LLC, which offers narrowband global voice and paging services. Eagle River instead will focus its satellite communications investments on data-centric companies, such as ICO Global Communications and Teledesic LLC.
"With the powerful influence of the Internet on global communications, we've made a strategic decision to focus our resources and attention on the satellite-based data services that ICO and Teledesic can provide," said Dennis Weibling, president of Eagle River. "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."
London-based ICO is building a global, mobile Internet Protocol-based voice and data service. Teledesic will deliver broadband data and value-added services at significantly higher data rates over a global network also optimized for IP. Iridium LLC, which launched service in 1998, offers global voice and paging services through its constellation of 66 low-Earth-orbit satellites.
In recent months, Teledesic has been working to support Craig McCaw's plans to acquire the assets of ICO. ICO, which is expected to go into service in 2002, sought Chapter 11 bankruptcy protection last August shortly after Iridium LLC also filed for bankruptcy protection. In October 1999, Eagle River Investments LLC, McCaw's investment management company, agreed to lead a group of investors that will provide up to $1.2 billion to ICO to enable the company to emerge from bankruptcy. On Feb. 4, Eagle River completed a definitive agreement to proceed and initiated a $275 million second round investment in ICO.
On Feb. 17 in separate proceedings, the U.S. Bankruptcy Court for the Southern District of New York approved $5 million in interim financing for Iridium from Eagle River and Motorola to finance Iridium's operations through March 6. Eagle River this week completed its due diligence on Iridium LLC.
McCaw is the chairman and CEO of Eagle River Investments LLC, through which he holds his interests in Teledesic LLC, ICO Global Communications, NEXTLINK Communications Inc. and Nextel Communications Inc. McCaw also is Teledesic's chairman and co-CEO. He and Microsoft founder Bill Gates are the company's two primary founding investors. Teledesic is the first licensed satellite communications network that will enable affordable, worldwide access to advanced telecommunications services such as computer networking, broadband Internet access and interactive multimedia.<< |
