Intel Capital is a big investor in wireless broadband operator Clearwire Corp., ponying up an undisclosed amount as the startup's first outside investor to give it a 30% stake at the time of Clearwire's
IPO last March. It's not unusual for the chip giant to pull back from venture investments after portfolio companies hit the public markets, but Seattle Post Intelligence reporter John Cook notes on his
blog that it is unusual for the company to so publicly distance itself as it did in announcing that Intel Capital president Arvind Sodhani would leave the portfolio company's board.
After raising an initial $160 million from founder and chairman Craig McCaw and 22 other investors, Clearwire took on
investment from Intel in 2004 as part of Intel's strategy to invest $150 million in wireless startups to accelerate adoption of high-speed wireless networks. Intel's broad investment strategy is based on expanding all kinds of wireless applications and standards to grow the sector as a whole, and the company has not been timid about spreading the wealth among potentially competitive players.
So citing potential conflict of interest in pulling back, Intel has raised
eyebrows. While stating that Intel will continue to support Clearwire, its
press release indicates that there is a substantive and possibly specific reason for the withdrawal. "Because of the scope of Mr. Sodhani's responsibilities as president of Intel Capital and executive vice president of Intel Corporation, Mr. Sodhani believed that it was prudent that he resign from the Clearwire board to avoid any conflicts of interest that might arise," Intel says.
See March 8 story from The Deal.comSee Dec. 27 post on John Cook's Venture Blog See Nov. 2004 story from The Deal.com
See Jan. 2 Seeking Alpha entry on ClearwireSee Dec. 27 Intel press release
Continue reading below
