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

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

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...