Clearwire S1, Dec 19, 2006 — iain – full post follows.
Craig McCaw’s Clearwire keeps looking to raise money, and it’s considering the public markets for the second time. According to regulatory filings the company could raise up to $400 million in an IPO with plans to have its shares of Class A common stock approved for the Nasdaq under the symbol ‘CLWR.’ Earlier this year the company filed and then withdrew its IPO plans.
Building broadband and mobile WiMAX-based networks is expensive. Clearwire has already raised over $1 billion from investors like Motorola and Intel. According to regulatory filings for the 9 months ending September 30, 2006 the company reported a net loss of $191.85 million. The company cites risk factors:
We are an early stage company with a history of operating losses and we expect to continue to realize significant net losses for the foreseeable future. As of September 30, 2006, our accumulated deficit was approximately $366.2 million.
Bringing in subscribers is also slow going. According to the filing the company says it has over 188,000 subscribers as of Nov. 30. Still, the company owns valuable licensed spectrum in the 2.495 to 2.690 GHz band and has the second largest spectrum position in this band after Sprint Nextel. Recently the company was chosen by the city of Grand Rapids, Michigan for a city-wide WiMAX network.
We’ll bring you more thoughts on Clearwire as we dig through the filing.