The document summarizes an article about the initial public offering (IPO) of Clearwire Corporation in 2007. Clearwire raised $600 million through its IPO to fund its network expansion efforts using WiMAX technology. While Clearwire founder Craig McCaw had success with previous ventures, analysts were uncertain if Clearwire could achieve long-term financial viability given high broadband penetration and competition for customers. The IPO succeeded due to investor confidence in McCaw, but investors may not be satisfied in the long run since Clearwire faces challenges penetrating the market.
5. expected to help finance the company's capital-expansion
efforts. Less than a year ago, Clearwire announced
IPO plans but abandoned them after receiving $900 million in
private investments led by Intel and Motorola.
Founded by Chairman Craig McCaw in 2003, Clearwire serves
more than 200,000 customers in 35 metro
markets. The company is building a next-generation network
using WiMAX technology and recently announced
it would pay $300 million for airwaves in the band that AT&T
was required to divest as part of its merger with
BellSouth.
Given some of the past successes that McCaw's been involved
with - the wireless pioneer played key roles in
the development of McCaw Cellular and Nextel
Communications - the success of the Clearwire IPO was not
surprising, said Ovum wireless analyst Roger Entner. However,
a successful IPO does not necessarily mean
Clearwire will achieve long-term financial viability.
"There are enough people around who will blindly invest in
anything Craig McCaw touches, so I don't have any
doubt that the IPO will succeed; I just don't know if the
investors, in the end, will be happy," Entner said. "It's
going to be tough for them because broadband penetration is
already so high, and they're going after the same
low-hanging fruits that have largely been picked already."
Publication title: Mobile Radio Technology
Volume: 25
Issue: 4
Pages: 24
Number of pages: 0
Publication year: 2007
Publication date: Apr 2007
Year: 2007
Section: News
Publisher: Penton Business Media, Inc. and Penton Media Inc.
Place of publication: Littleton
6. Country of publication: United States
Publication subject: Communications--Radio
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ISSN: 07457626
Source type: Trade Journals
Language of publication: English
Document type: PERIODICAL
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Copyright: (Copyright 2007 by PRIMEDIA Business Magazines
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Last updated: 2011-09-27
Database: ProQuest Central
Bibliography
Citation style: APA 6th - American Psychological Association,
6th Edition
Jackson, D. (2007). Clearwire IPO raises $600 million. Mobile
Radio Technology, 25(4), 24. Retrieved from
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7. 9
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M6: Assignment 1: Case Analysis 3
By Thursday, October 3, 2013, read about Clearwire, which is
the case for analysis in this module. Clearwire filed their IPOs
in early 2006, then withdrew and filed again in late 2006.
Conduct further research on the company with respect to its IPO
and its stocks and answer all the questions.
Discussion Question
If you were given $10,000 to invest, would you choose
Clearwire as one of your investments? In your response explain
how the IPO would affect your decision and describe the capital
structure of Clearwire and its management. What impact does
competition have on the growth of Clearwire?
Case Analysis: Clearwire IPO raises $600 million. (2007,
April). Mobile Radio Technology, 25 (4) (AN 24791185), see
attachment.
Submit your answers in Microsoft Word, double-spaced, in
Times New Roman 12 pt. font. Cite all sources and be sure to
use the current APA standards when formatting your paper.
Grading Criteria
Maximum Points
Demonstrated an understanding of the topics being discussed.
4
Met the criteria for the correct responses to the assigned
8. questions.
4
Participation Criteria
Used vocabulary relevant to the topics under discussion.
4
Participated in the discussion by asking a question, providing a
statement of clarification, providing a point of view with
rationale, challenging a point of discussion, or making a
relationship between one or more points of the discussion.
4
Justified ideas and responses by using appropriate examples and
references from texts, websites, and other references or personal
experience.
4
Wrote in a clear, concise, and organized manner; demonstrated
ethical scholarship in accurate representation and attribution of
sources, displayed accurate spelling, grammar, and punctuation.
4
Total:
24
PLEASE NOTE: Before you submit the essay for this
assignment take a moment to re-read the assignment and take
special note of each required item in the Grading Criteria. Be
certain you have addressed in an appropriate, complete manner
each assignment and Grading Criteria requirement. Also, be
certain you have followed all instructions as to length, APA
rules, etc stated in the assignment. DO NOT WAIT UNTIL THE
LAST MINUTE BEFORE THE DUE DATE TO BEGIN YOUR
WORK.
