Harbinger Wireless Venture In Deal With Sprint

Jun 20 2011 | 2:05am ET

Otherwise wracked with difficulties, Harbinger Capital Management's ambitious wireless broadband venture has struck a crucial deal.

LightSquared and Sprint Nextel Corp. signed a 15-year agreement to both build and run the nationwide network—one that has drawn criticism, and negative test results, over possible interference with global positioning systems. Under the deal, Sprint will both help LightSquared set up its network—which must cover more than 200 million customers by 2015 to meet Federal Communications Commission guidelines—and become a major, long-term customer.

"LightSquared and Sprint will jointly develop, deploy and operate LightSquare's 4G LTE network," Harbinger said in a letter to investors. "Sprint will become a significant customer of LightSquared's 4G LTE network."

The deal, first reported by Bloomberg News, could be worth as much as $20 billion.

The Sprint agreement is the most important made by LightSquared, which plans to sell space on its network to other providers as well as Sprint. The company accounts for a substantial chunk of Harbinger's $6 billion in assets; the hedge fund recently paid out more than half of its first-quarter redemptions in the form of in-kind distributions of LightSquared shares.

LightSquared is set to deliver its own report on possible interference issues on July 1.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR