Sprint Abandons LightSquared

Mar 19 2012 | 11:31am ET

The good news for Harbinger Capital Partners' cash-strapped wireless Internet venture is that it has another $65 million with which to stave off bankruptcy. The bad news: It's the price for losing its most important customer.

As expected, Sprint Nextel Corp. ended its network-sharing agreement with LightSquared last week. Under that $13.5 billion deal, Sprint was to build and operate the LightSquared network. But earlier this year, the Federal Communications Commission said it would revoke LightSquared's preliminary approval due to concerns that its network would interfere with global positioning systems.

LightSquared tried to put a brave face on the Sprint decision, saying the refunded $65 million—Sprint kept $236 million it had already been paid by LightSquared—gives it "more flexibility." The company has vowed to fight for survival and seek to overturn the FCC decision.

Harbinger has invested more than half of its assets in LightSquared, which recently cut almost half of its staff and replaced its CEO.


In Depth

Firm Focus: Sustainable Insight Capital Bullish On ESG

Aug 12 2014 | 9:18am ET

Bruce Kahn spent over 15 years as a research scientist/consultant on environmental...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note