Investors put $600 million into Clearwire

Putting market weakness from last week aside, investors put $600 million into Kirkland, Washington based WiMax upstart Clearwire. Clearwire had initially expected to raise $460 million to $500 million from 20 million shares. Dearth of tech IPOs resulted in 24 million shares being sold. Clearwire stock went for $25, opened at $27.25 today, and is trading at $24.90 right now.

Currently Clearwire is millions away from turning to profit and spectrum buyout spree. According to WSJ, Clearwire’s reported a net loss of $284 million on revenue of $100 million for 2006.

From the competition standpoint, Sprint is getting ready with its WiMax plans to take on Clearwire.

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3 Responses to “Investors put $600 million into Clearwire”

  1. StartupSquad » Blog Archive » Sprint+Nokia in Texas; NBC on MobiTV; Quintura Kids re-launched Says:

    […] Sprint+Nokia: Sprint has signed up Nokia to build WiMAX infrastructure for its mobile WiMAX network rollout in Texas. Among other things Nokia will be setting up WiMAX base stations in four Texas cities -Dallas and Fort Worth. Conflicting reports are emerging as to when the service will go live. Time ranges I came across till now – First half of 2008 to end of 2008. Sprint has plans to launch Initial service in Chicago, Baltimore, and Washington, D.C., by the end of 2007. All this adds upto is more pressure for Clearwire to perform whose stock has now sagged to $20.76. […]

  2. Bob Jones Says:

    Clearwire will not make their anticipated market launch of Washington DC to be competitive with Sprint/Nextel. Further.. all of their remaining buildouts are still their pre-wimax solution called “Expedience” which delivers 1.5mb down and 256 kb up which is hardly competitive in their markets.

  3. StartupSquad » Blog Archive » Sprint’s WiMax plan need partners;Price tag taking the toll Says:

    […] Spin off Sprint’s WiMax unit as part of a deal with Clearwire […]

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