Buddy, can you spare a million bucks a month?
Harris Stratex just picked up Telsima Networks for a low $1 million/month for 12 months. The potential reason was the relationship the two companies had where Harris Stratex resold equipment from Telsima. Who is Telsima? A little-known WiMAX products provider who has received at least $81 million in investment in the past. Here is part of the company's funding history:
- Telsima Closes Working Capital Debt of $25 Million
- US - Telsima raises USD 20 million funding
- Telsima Receives $50 Million Funding Infusion
- Telsima receives 4th round funding
My take? If you run out of investment money and do PR and marketing poorly, you are toast and get below fire sale pricing. Now is the time when many companies with technical savvy who don't make money get wiped out.
Obviously the global credit crisis is having a major impact on corporate investment meaning WiMAX equipment and service providers have difficulty getting funding.
Moreover, fear of investing in the wrong technology and the PR onslaught of LTE has made carriers and investors more hesitant . All this makes for a bad combination for underfunded WiMAX players and explains the $12 million price tag.