Clearwire IPO Take Two
from the play-it-again-Craig dept
Earlier this summer, WiMAX operator Clearwire filed and then quickly withdrew plans for an IPO, after Intel bestowed the company with a whopping $600 million investment, and Motorola bought its equipment unit for $300 million, ensuring that one of the biggest proponents of the technology would have all the cash it needs, free from public market scrutiny. Apparently that $900 million wasn't actually enough to tide the company over, as it's now re-submitted plans to go public, to raise another $400 million. It's quite a testament to the massive capex requirements for this company, that it needs to tap the public markets so soon after such a large infusion of cash. And it's worth noting that the amount the company expects to take in from the public is much less than it's received in the private market, confirming perhaps that its investors (primarily Intel) have given the company so much money, not because they anyone thinks it's a good investment, because they just want it to succeed. And yet, things don't look a whole lot better for the company. According to the S-1, the company's subscriber growth isn't particularly impressive, given how small its base is, along with all of the money (and hype) it's received. Since the start of the year, it's added about 130,000 subscribers, bringing the total to 188,000. And after bleeding away $200 million in the first nine months of the year, the company still has no timeline for profitability. The one factor working in its favor is the overall market. The stock market was weak this summer, and the offering might have been associated with Vonage's botched IPO. Now, with the market at record highs, and a slew of successful offerings of late, it should at least benefit from better conditions.