Clearwire commenced trading today under the ticker symbol "CLWR" on the NASDAQ. Clearwire is selling 24 million shares priced at $23 to $25 a share, for a high-end total of about $600 million. The second largest holder of 2.5 GHz spectrum behind Sprint Nextel, Clearwire three years ago embarked on a low-key rollout of its proprietary WiMAX-like technology. As of December 31, 2006, it offered service to 8.6 million people in 34 U.S. markets. The company dropped its IPO plans in July after securing $900 million in a round of financing led by Intel Capital.
But the risks are still the same. Clearwire generated $100 million in revenue for 2006, but it lost about $284 million. Since its inception, it has lost a total of approximately $458.6 million. And we have yet to see any standalone wireless broadband service provider sustain their business model.
To read more:
- see this article about Clearwire's IPO at CNET News