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Telecom & Wireless

Investors Throw Away More Money On LightSquared

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By Douglas A. McIntyre Published
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Investors threw another $265 million at LightSquared, the troubled LTE 4G wireless provider with the audacity to compete with Sprint-Nextel (NYSE: S), Verizon Wireless and AT&T Wireless. Many observers think the company is doomed and it has not even launched a product.

The firm said:

LightSquared, the nation’s first wholesale-only integrated 4G-LTE wireless broadband and satellite network, announced today that it has raised $265 million. The capital was drawn from both existing investors as well as new investors in the company. LightSquared will use these funds for general corporate purposes, which includes constructing its world-class 4G-LTE wholesale network. Over the last 12 months LightSquared has raised over $2.3 billion

 

 

 

 

It is telling that the announcement did not carry more detail about the sources of capital.

Philip A. Falcone, the head of Harbinger Capital Partners, had put in a great deal of the money into LightSquared, and his fund’s investors are, on the whole, not happy about it.

NetworkWorld reported recently, “A U.S. House of Representatives committee has stepped into the fray over startup LightSquared’s planned mobile data network, and passed a bill that would block the Federal Communications Commission from spending any money granting the carrier a waiver it is seeking.”

LightSquared has almost no chance of succeeding

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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