ICO-Teledesic Global (ITG) and New ICO.....article 7-11-00 re: ICO-Teledesic gets $315 million private infusion
We should probably start a new board for this one...Is anyone out there that will do it?
KLP
archives.seattletimes.nwsource.com
Business : Tuesday, July 11, 2000
ICO-Teledesic gets $315 million private infusion
by Roger Yu
Seattle Times technology reporter
In the largest private equity investment received by a local company this year, the recently formed ICO-Teledesic Global said it completed a $315 million private investment agreement from Bill Gates and others to finance the development of the "Internet-in-the-sky" program.
ICO-Teledesic Global (ITG), a Craig McCaw-controlled holding company that seeks to launch in 2003 a high-speed Internet service beamed from satellites, will receive about $100 million from the Microsoft chairman through his private investment firm, Cascade Investment.
This would be the first investment in McCaw's satellite ventures by Gates since he joined McCaw in 1994 as one of two primary founding investors.
Clayton, Dubilier & Rice, a private investor that manages a fund, said it committed $150 million in ITG and picked up the option to invest $200 million more at a later date.
Indian media entrepreneur Subhash Chandra and Burtington Resources, an investment arm of Swiss investors Jack and Philippe Setton, also chipped in about $65 million.
McCaw formed ITG in May as a holding company and raised about $1.2 billion to rescue and restructure the then-bankrupt ICO Global Communications, which had pursued plans to launch medium-orbit satellites for high-speed Internet service.
McCaw renamed ICO as New ICO and said he would place it under ITG as a subsidiary, along with Bellevue-based Teledesic. McCaw founded Tele desic in the early 1990s to launch low-orbit satellites that would offer high-speed Internet services.
ITG officials revealed yesterday that a $1.2 billion rescue package included $500 million from McCaw's Kirkland-based Eagle River Investments.
Although company officials won't specify how the investments are to be used, the money is likely to be routed to boost New ICO's efforts because its launch target, 2003, is sooner than Teledesic's.
New ICO needs $2.1 billion more to launch 10 to 12 medium-orbit satellites. Meanwhile, company watchers say Teledesic will need about $9 billion to launch its satellites by 2004. |
