Valleywag
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Posts Tagged “
SK Telecom
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Virgin Mobile bails out Helio
Virgin Mobile will acquire failed mobile virtual network operator Helio for $39 million in equity and, if the last two years are a trend, much more in costs. Founded as a joint venture between Earthlink and SK Telecom, Helio burned through $560 million in its first two years. [PaidContent]
rumormonger
Helio, Virgin Mobile in merger talks
SK Telecom, the backer of money-losing wireless startup Helio, could buy out Virgin Mobile USA and combine it with Helio. [MocoNews.net]
rumormonger
Helio hires Goldman Sachs
Helio has tapped Goldman Sachs, its longtime banker, for a new project, we hear. Signing up a banker is usually a sign that a company is putting itself up for sale. Helio, Sky Dayton's wireless startup, began life as a joint venture of EarthLink and SK Telecom, the South Korean phone company. But EarthLink washed its hands of Helio after the untimely death of CEO Garry Betty, and on Tuesday, Dayton and most of his EarthLink-loyalist management team were ousted. Now SK, too, may be looking for Goldman to rid it of a cash-burning child. Why would anyone buy Helio? Not for its tiny user base. Possibly for its innovative phone designs, like the Ocean, and mobile friend-finding services. It is unlikely those will reclaim the hundreds of millions of dollars SK poured into Dayton's dream.
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CFO and three VPs depart Helio, chairman to follow
Helio CFO Todd Tappin and execs Michael Zemetra, Terry Boyle and Kieran Hannon will leave the company by March 31. A source tells us former CEO and current chairman Sky Dayton won't remain long, either. The cell-phone carrier started as a joint venture in 2006 between EarthLink, the Internet service provider founded by Dayton, and South Korean phone company SK Telecom. Since then, it has disappointed, and EarthLink ran short on cash to invest. When SK Telecom reupped with another $270 million last fall, reducing EarthLink's share to 22 percent, this kind of shakeout was expected. In fact, our source tells us most if not all executives from the "EarthLink side of the house" will depart the company on or before March 31.
Sprint Nextel rejected an offer by South Korea's SK Telecom and private-equity firm Providence Equity Partners to invest $5 billion in the company and install former chairman Tim Donahue as chief executive. [WSJ]
Sky Dayton's wireless company, Helio, as rumored, is getting new funding without help from co-owner EarthLink, an Internet service provider facing financial straits. Joint-venture partner SK Telecom is investing $270 million in Helio and renegotiating its agreement with EarthLink. [Reuters]
