Time Warner Cable (TWC) has begun to sell its 46.4 million shares in WiMAX wholesaler Clearwire Corporation, hiring Credit Suisse as sole underwriter for the offering.
In a statement Clearwire said Time Warner is selling approximately 7.8% of the total…
Time Warner Cable (TWC) has begun to sell its 46.4 million shares in WiMAX wholesaler Clearwire Corporation, hiring Credit Suisse as sole underwriter for the offering.
In a statement Clearwire said Time Warner is selling approximately 7.8% of the total outstanding Class A common stock, and approximately 3.2% of the total outstanding Class A and Class B common stock.
Clearwire’s shares are trading at US$1.48, meaning the TWC stake can be valued in the region of US$70m.
That figure is a far cry from the US$550m TWC paid in 2008 when it bought into Clearwire as part of a group of companies – including Intel, Google and Comcast – that invested a total of US$3.2bn into the WiMAX firm.
TWC has recently signed cross-marketing agreements with Verizon Wireless, Clearwire’s biggest competitor, as part of a spectrum sale that means the operators will now promote and sell each others’ products after conditional approval from the Federal Communications Commission and Department of Justice.
