Time Warner Dumping Its Clearwire Stake
Time Warner today announced that it plans to sell its entire 7.8% stake in Clearwire, the beleaguered WiMax provider. Time Warner invested in Clearwire with other tech companies, such as Google and Intel, in 2008. Clearwire struggled to gain subscribers and has since launched an effort to convert to LTE 4G. Time Warner's original investment was worth $550 million. At today's market prices, it will get back only $73.3 million. Time Warner notified its fellow investors, as well as the Securities and Exchange Commission. Google sold off its stake earlier this year at a $443 million loss, and Intel wrote down the value of its 7.3% investment. Sprint remains the largest shareholder Clearwire.
AT&T to Buy Time Warner for $85.4 Billion
AT&T has agreed to purchase Time Warner for $85.4 billion in a stock-and-cash deal that will merge AT&T's delivery networks with Time Warner's vast catalog of content. AT&T believes the combined companies will be able to save $1 billion per year once fully merged.
AT&T Talking to DirecTV About Potential Acquisition
AT&T has spoken to DirecTV about the possibility of acquiring the satellite TV firm, according to The Wall Street Journal. Citing sources familiar with AT&T's plans, the Journal says AT&T wants to grab more pay-TV marketshare and approached DirecTV after Comcast made a bid for Time Warner earlier this year.
SoftBank Invests Another $73 Million in Sprint
SoftBank has purchased yet more shares of Sprint stock, boosting its stake in the company to just over 80%. SoftBank shelled out $73 million for about 16.8 million shares.
FreedomPop Partnering with Intel for Its First Phone
FreedomPop plans to launch its first smartphone thanks to a new investment from Intel. The chip-maker is supplying the processor for the handset, which will be made by a "well-known device manufacturer." The device will go on sale next year for less than $200.