Google Set To Sell Stakes In Clearwire Reportedly For $47 Million, A Tenth Of What It Actually Paid

Posted on Feb 24 2012 - 1:28pm by Editorial Staff

The search giant, Google has filed documents with the US Securities and Exchange Commission today in preparation for selling its complete stake in the Clearwire Corporation, the firm building a 4G WiMAX network in the US – the news comes just a week after Clearwire posted its quarter fourth losses, indicating it may require additional funding to survive and sustain itself in the market.

Back in 2008, Google spend $500 million to acquire a 6.5 percent share in the troubled company, now, in order to cut its losses, Google is taking such a move and is selling up approximately $47 million. At a proposed $1.60 price per share, Google is looking to sell its 6.5% stake for around $47 million, around a tenth of the $500 million it bought into the company at back in 2008. It also undercuts the current $2.27 share price on the NASDAQ, The Verge notes.

Google’s filing notes:

“Google periodically rebalances its investments based on its goals and its evaluation of market conditions,” but the move comes as the company has been looking to consolidate its operations in a few core areas such as search, advertising and social.

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