Here's another space story. Remember Iridium? Back in the 1980's Motorola had a plan to provide the military with a world wide mobile satellite network. DOD lost interest when the cold war ended so Motorola decided to put up a commercial system thinking there would be plenty of business people willing to pay good money for mobile phones.
After spending $6 billion putting up 66 comsats the system came online in1998 only to go bankrupt 9 months later. The company had completely under estimated the growth of terrestrial mobile networks.
There was lots of talk of the satellites falling out of the sky at the time but the bankrupt company sold its assets for a bargain basement $25 million. The new owners reduced the phone rates, found new customers and have been turning a profit. They now sold it for $591 million. Not a bad return for a $25 million investment. The original satellites will need to be replaced around 2014 so expect the new owners will be investing in broadband capable satellites.
Investment companies usually grow an established company then sell it for a substantial return don't be surprised if the add a zero or two to their investment.
After spending $6 billion putting up 66 comsats the system came online in1998 only to go bankrupt 9 months later. The company had completely under estimated the growth of terrestrial mobile networks.
There was lots of talk of the satellites falling out of the sky at the time but the bankrupt company sold its assets for a bargain basement $25 million. The new owners reduced the phone rates, found new customers and have been turning a profit. They now sold it for $591 million. Not a bad return for a $25 million investment. The original satellites will need to be replaced around 2014 so expect the new owners will be investing in broadband capable satellites.
Investment companies usually grow an established company then sell it for a substantial return don't be surprised if the add a zero or two to their investment.
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