Google Drops Clearwire Stock, Takes Huge Loss in the Process - The UpStream

Google Drops Clearwire Stock, Takes Huge Loss in the Process

posted Sunday Mar 11, 2012 by Nicholas DiMeo

Google Drops Clearwire Stock, Takes Huge Loss in the Process

Last week I covered Sprint's continuing aid for wireless company Clearwire who is currently facing some tough times. Last month, I did a recap on their entire current situation from the beginning up until now.

This week, however, we must talk about the instability of the company yet again. Reports are coming in that Google has sold its portion of Clearwire stock to Credit Suisse Group AG. Google had purchased its 29.4 million shares in 2008 for $500 million and has now sold off that purchase at $2.26 per share, or $66.5 million, well under the original purchase price. However, Google was only looking for $1.60 a share last week, so I suppose getting more than what you wanted out of it isn't a total loss. $453 million is a lot of money to lose, though.

Now, while it's a common practice for companies like Credit Suisse to pick up large quantities of shares to then resell to other interested buyers, Google dropping its stake in the company could speak volumes about the uncertainty that is looming around Clearwire's future. Google commented that, "Google periodically rebalances its investments based on its goals and its evaluation of market conditions."

After all that you've seen from our Clearwire coverage just this year alone, do you think the company will be around in 6 months? A year? Longer? We want to know in the comments section below.

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