Google to sell stake in Clearwire at a huge loss

By on February 24, 2012 at 6:50 PM.

Google to sell stake in Clearwire at a huge loss

Google on Friday filed documents with the U.S. Securities and Exchange Commission to sell its entire stake in Clearwire. The Mountain View-based company spent $500 million in 2008  to acquire a 6.5% stake in Clearwire, and now the search giant is now looking to sell its share for $47 million, less than a tenth of the original investment. Clearwire was the first company to roll out a 4G network in the U.S., however the WiMAX technology the network was built around failed to gain widespread adoption, with every major carrier instead deploying or looking to deploy 4G LTE service. Even Clearwire’s largest shareholder, Sprint, announced plans to launch a 4G LTE network in mid-2012. According to the SEC filing, Google will exit Clearwire in an effort to rebalance its investment portfolio. The sale is expected to close by the end of March. More →

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Amid SEC inquiry, Facebook gets $50 billion valuation after $500 million private investment

By on January 3, 2011 at 3:07 PM.

Amid SEC inquiry, Facebook gets $50 billion valuation after $500 million private investment

Social networking giant Facebook may be looking to conquer another market, Wall Street. After news spread of a $500 million investment — $450 million from Goldman Sachs and $50 million from Russia’s Sky Technologies — Facebook was given a valuation of $50 billion by market analysts and firms. The eleven figure price tag was placed upon the privately held company even as the government’s Securities and Exchange Commission has, purportedly, launched a formal inquiry into Facebook’s private-share trading activity. According to the Times, the SEC is investigating the “increasingly hot private market for shares in Internet companies, including Facebook, Twitter, the gaming site Zynga and LinkedIn.” The government agency is looking for loopholes in the public disclosure laws that companies, investors, and firms may be exploiting through the use of private shares. A $50 billion valuation of Facebook makes the company’s youthful CEO, Mark Zuckerberg, worth an estimated $15 billion — more than double the estimated $6.9 billion net-worth put on Facebook’s founder back in September. More →

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Google is trimming “operational expenses”; read layoffs

By on November 25, 2008 at 1:15 PM.

Google is trimming “operational expenses”; read layoffs

Regardless of how large, powerful and influential a company is, no one is recession-proof. Internet search giant Google has been laying off employees since this summer, and it has been doing so under the news radar for the most part. The SEC requires companies to disclose information regarding layoffs but apparently Google had slipped around the rule and reported its Q3 earnings as expected by saying it had cut down on “operational expenses”. Though Google officially has 20,123 employees, there are an additional 10,000 which are just labeled as temporary operational expenses. However it wants to label those human beings, they are still going to get shafted and are still going to be hurt by this massive cut in manpower. Google’s very own Sergey Brin says, “There is no question that the number (of workers) is too high”.

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