[London, ENGLAND] ICO-Teledesic
Global
announced Tuesday that investors including Clayton, Dubilier & Rice (CD&R),
Eagle River, and Bill Gates have agreed to back its satellite communications
venture with $1 billion.
Private equity investor CD&R will put $350 million into the
satellite venture pioneered by Craig McCaw, the founder of
Teledesic and now chairman of both ICO-Teledesic Global and New ICO.
Eagle River Investments is investing $500 million — part of the
$1.2 billion restructuring of London-based New ICO.
Taking a relatively minor role on this occasion, Bill Gates is investing
a modest $100 million in the venture via his private investment vehicle
Cascade Investment. However, he was one of Teledesic’s two primary founding
investors when he joined with telecommunications pioneer McCaw in 1994.
“We’re honored and humbled to have such sophisticated international
investors as part of our team. We’re further honored that Bill Gates
continues to be an outstanding partner and supporter. We greatly
appreciate his participation,” said a joyful McCaw, whose
ambitious project to become a global provider of wireless
Internet-in-the-Sky satellite services could become a major rival
to land-based fiber networks.
A merger between New ICO (pronounced “EYE-co”) and Teledesic is
still subject to approval by shareholders and regulatory authorities,
but if it goes ahead both companies will become subsidiaries of
ICO-Teledesic Global. Tuesday’s announcement of massive investment
makes this more likely.
The rest of the $1 billion comes from other investors, including
Indian media entrepreneur Subhash Chandra, and Burtington Resources,
the private investment vehicle of Swiss investors Jack and Philippe
Setton.
The target date for launching Teledesic’s broadband Internet services
is late 2004. New ICO, however, has an earlier starting date for
its third-generation (3G) wireless services via satellite, saying
it will introduce them in 2003.
George W. Tamke, an operating partner of CD&R and former vice
chairman and co-chief executive of Emerson Electric Company, will
serve on the ICO-Teledesic Global board.
