Google announced on Friday that it was selling off its stakes in the troubled wireless data network operator Clearwire Corp.
The search giant invested a hefty $500 million in the company back in 2008; however less than four years down the road Google is all set to sell its stakes for an overwhelming 94 per cent loss. In a regulatory filing, Google announced that it is making available its stake in the company for sale at just $1.60 per share i.e. for a total of $47 million.
Following this announcement, the shares of Clearwire declined by 6.8 percent closing at $2.11. Google has refrained from disclosing the reasons behind the sale and neither has Clearwire made any announcement in this regards.
"Google periodically rebalances its investments based on its goals and its evaluation of market conditions," Google wrote in the filing, as reported by Business Week.
The majority stake in Clearwire is owned by the telecom operator Sprint; however it does not enjoy any voting control. Intel also held a stake in Clearwire amounting to $938 million which it wrote off in 2009 that lead to a decline company's share price.