Many Americans have seen their stock portfolio values plummet over the past few years, and now Google knows how you feel, kinda. Obviously Google wasn’t counting on its 6.5% stake in Clearwire to put the kids through college or retire. But selling $500 million in shares for $47 million cannot feel good no matter who you are.
According to a filing by Google with the Securities and Exchange Commission (SEC) this is exactly what is going to happen. The “everything must go” sale will start on Monday, with current shareholders getting first dibs. Google is so desperate to jump ship that it is offering the shares at $1.60 per share-$.67 a share less than Clearwire’s $2.27 per share closing price on Friday.
Clearwire has been skating on thin ice for a while now, and this could end up being the final nail in the coffin. Most of the ice-thinning has been due to Clearwire’s failed WiMAX network. While the network itself is great, America’s adoption of it has not been so great.
So while this is undoubtedly painful for Google, somehow I think it will recover. I’m not so sure if Clearwire can handle another massive devaluation. Sprint may have to man up and finally buy Clearwire outright to prevent it going under by the time it’s all said and done. Then again, it could be just another day on the stock market for Clearwire. We’ll see come Monday.