Phil Falcone apparently thinks it just requires some basic algebra to value his pipedream 4G wirelss company.A Reuters reporter who was trying to figure out how much Falcone’s LightSquared, the company he’s hoping to turn into a competitor, is worth asked Falcone for a valuation figure.
His email exchange with Falcone went something like this:
Reporter: “Is a $3 billion to $5 billion valuation figure for LightSquared (based on its spectrum assets in the company TerreStar) appropriate?”
Falcone: “I’ve been offered more but u r getting warm.”
Falcone: “Do the maths.”
Telecom experts, by the way, told Reuters coming up with a proper valuation for a telecom company’s operating spectrum is tricky.
But apparently there is some very obvious way to value LightSquared. Any ideas?
Here’s where Reuters got the $3 – $5 billion number:
By comparison, DBSD North America, a telecom company that filed for bankruptcy last year and has a similar spectrum and satellite capacity to TerreStar’s, was given a potential post-bankruptcy valuation of between $492 million and $692 million. The judge in the case chose that range after hearing expert testimony from witnesses who offered valuations that began as low as $140 million and went as high as $3.1 billion.
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