Bloomberg is reporting that billionaire Carl Icahn (with two other investors) has bought out $300 Million worth of bonds from LightSquared bondholders.
This begs the question? Icahn coming in as Savior or as a cold hearted liquidator? It seems like an odd time to all of a sudden get faith in the fledging start up that is LightSquared. So motives have to be in question, here.
Icahn is reportedly picking up the bonds on the cheap. And as bondholder, he would stand to pick up LightSquared's assets, like its state-of-the-art data satellite and beleaguered spectrum, should the company ever go belly up. However, if the FCC doesn't grant permission for LightSquared's spectrum ever to be used for a terrestrial LTE network, the spectrum is going to be worth much. The spectrum already can be used by less powerful satellite communications, like the satellite that LS2 currently has orbiting the earth.