Time Warner Cable Prepares to Sell 46.4M Clearwire (CLWR) Shares After 87% Loss
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Shares of Clearwire (NASDAQ: CLWR) were under pressure Monday following reports Time Warner Cable (NYSE: TWC) plans to sell its entire 7.8 percent stake.
Other major Clearwire investors, including Sprint (NYSE: S) and Intel (Nasdaq: INTC), were notified of the cable company's plans and have an option to buy all or part of the stake, the Wall Street Journal reported.
Time Warner Cable owns 46.4 million shares of Clearwire, which it bought for $550 million in 2008. The stake is now worth about $70 million, representing a loss of about 87 percent.
Time Warner Cable has already written down the investment and will likely use the proceed from the sale for share buybacks. Other Clearwire investors like Google (Nasdaq: CLWR) and Intel have also taken large hits on their investments. Google sold its in March for a $433.5 million loss and Intel wrote down the value of its entire 7.3 percent stake.
Shares of Clearwire closed at $1.54, down 4.9 percent.
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Other major Clearwire investors, including Sprint (NYSE: S) and Intel (Nasdaq: INTC), were notified of the cable company's plans and have an option to buy all or part of the stake, the Wall Street Journal reported.
Time Warner Cable owns 46.4 million shares of Clearwire, which it bought for $550 million in 2008. The stake is now worth about $70 million, representing a loss of about 87 percent.
Time Warner Cable has already written down the investment and will likely use the proceed from the sale for share buybacks. Other Clearwire investors like Google (Nasdaq: CLWR) and Intel have also taken large hits on their investments. Google sold its in March for a $433.5 million loss and Intel wrote down the value of its entire 7.3 percent stake.
Shares of Clearwire closed at $1.54, down 4.9 percent.
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