IRIQE Iridium Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IRIQE Iridium

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: sks1 who wrote (12)	1/30/2000 5:02:00 PM
From: Marty Rubin	Read Replies (1) of 15

Sks1: McCaw + Iridium (from latest BW, feb 07, 2000): "Iridium Isn't Space Junk Yet" --- Telecom Tales Iridium Isn't Space Junk Yet In a dramatic reversal, wireless pioneer Craig McCaw is returning to the negotiating table to cut a deal to buy the bankrupt satellite-telecommunications company Iridium. In December, the talks between Iridium and McCaw looked dead because he couldn't reach terms that made financial sense: Iridium has been generating only about $10 million in revenues while Motorola is supposed to be paid more than $400 million annually for maintaining and operating the system. What has changed? According to sources close to McCaw, Motorola now is willing to slash its charges to $100 million per year for the work. Another scenario is that Motorola would run Iridium for nothing for a year or two, getting paid further down the road when Iridium is in the black. Finding a solution is important because Motorola could face legal action from bondholders if Iridium goes down for good, since the company conceived of the system for global long-distance calling and helped raise the $5 billion to finance it. How certain is a deal? A source close to the Seattle billionaire says that the chances of success are 'about 75%.' Motorola declined to comment. By Peter Elstrom Copyright 2000 The McGraw-Hill Companies, Inc. All rights reserved. (http://www.businessweek.com/)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next