LightSquared, Sprint Put $13.5 Billion Deal On Hold

Jan 6 2012 | 9:10am ET

Just days after winning a critical extension from its most important partner and customer, Harbinger Capital Management's wireless Internet venture has won a further reprieve from Sprint Nextel Corp.

Sprint CEO Dan Hesse said yesterday that his company and LightSquared have agreed to put their $13.5 billion deal on hold until the latter wins the needed regulatory approvals. LightSquared needs the Federal Communications Commission to sign off on its plans before it can deploy its network, which Sprint was to build, but has run into stiff opposition from global positioning system users and manufacturers, who warn that LightSquared could interfere with such devices.

Hesse said that he still hoped that LightSquared, into which Harbinger founder Philip Falcone has poured the majority of his hedge fund's assets, would win the necessary approvals.

"The companies have agreed to realigning our deployment timeline to coincide with potential FCC actions," a Sprint spokesman said. "Both companies believe it is prudent to pull back on expenses."

A recent internal report indicates that LightSquared is running out of money. The company has already paid Sprint $290 million.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...