WSJ Spins Another Yarn Of Clearwire HypeMAX
from the move-along-nothing-to-see-here dept
While things may be pretty cool on the IPO front, blaming the market for Vonage's weak offering as well as Clearwire's decision to go another route to raise funds ignores the fact that neither of these offerings really looked particularly attractive. You wouldn't know it from the WSJ article, but Clearwire's S-1 raised a lot of questions about the company, none of which have really been answered -- or now need to be answered, since it will remain private for the time being. The only hint of discussion of the company's financials, beyond an acknowledgement it's already got more than $600 million in debt, comes in a throwaway last paragraph, where the reporter notes Clearwire pulled in just $33 million in 2005. Of course, a little more research would have revealed that $25 million of that was from equipment sales -- from the unit Clearwire sold to Motorola at the time of the Intel investment. So despite the media's anointing Craig McCaw as a golden boy -- conveniently forgetting the massive flameouts of XO and Teledesic -- plenty of questions still hang over Clearwire and WiMAX. While there's a dire need for new broadband providers to introduce more competition into the marketplace, it's still awfully early to say Clearwire's a success, and Intel's investment is no proof. HomeRF, anyone?