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Tech stocks - Wednesday, November 11, 2009

Broadband's Clearwire Raises $1.564B From Strategic Partners

We have yet to try out Clearwire but we like their pitch and think they have destiny on their side. Kirkland, WA-based Clearwire (CLWR) confirmed that it is closing on raising $1.564B. Investors are Sprint Nextel, Comcast, Time Warner Cable, Intel, Eagle River Holdings, and Bright House Networks. More specifically, Sprint Nextel invested $1.176B, Comcast $196M, Time Warner Cable $103M, Intel $50M, Eagle River $20M and Bright House Networks $19M.

Clearwire's third-quarter loss widened as the wireless Internet provider's use of promotional discounts to boost its subscriber count offset higher revenue. Subscriber count climbed 18%, to 55K as net additions surged to 44K from 8K a year earlier.

Average revenue per user dropped 1.8% to $39.71, hurt by increased promotional discounts as a result of the higher gross subscription additions.

Shares fell 3.5% to $7 in after-hours trading after rising 6.6% in the regular session. The stock was as low as $2.64 in March.

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