[time-nuts] More on LightSquared

Rex rexa at sonic.net
Sun Jun 5 15:02:48 UTC 2011

Someone in the industry said that it makes so little sense that there 
must be some other way for it (the proposal, not the technology) to work.

The shorting financially is one way and the prime investor in L^2 is a 
major hedge fund. The other possibility I heard proposed by my friend is 
that at the last minute there will be a compromise to let them move to a 
different portion of the spectrum than the idiotic plan. The gain for 
L^2 would be that they get the spectrum handed to them that would have 
cost big $ if they had started negotiating for at the beginning.

Anyone want to bet against either a big financial gain based on shorting 
or something like CDS when the deal melts down, or a big bait and switch 
at the last minute that saves GPS with a big giveaway?

On 6/5/2011 6:53 AM, Jim Lux wrote:
> WHat are the odds that Light squared is a clever gambit to make money 
> by shorting the stock (or equivalent, I know L2 is privately held). 
> Propose something that looks sexy and meets a national need (universal 
> wireless broadband, solving the last mile!)...
> Get tons o' bucks into the firm because it's gonna be great guys, 
> let's all ride it together.
> (buy fancy car, get paid big salary and bonus)
> Oh.. a regulatory hitch?
> No problem, we're better than sliced bread, keep sending that money, 
> let's make all the co-marketing deals with stock swaps, get that land 
> for our stations optioned and tied up.
> Oops, there are laws of physics and a crowd with flaming torches and 
> pitchforks after us.
> Well, we gave it our best shot...thanks for the support, and, no, you 
> don't get your money back.
> L2 looks good to people who don't know enough of the details.  Don't 
> forget that these investors are people who also invest in Shannon Law 
> violating communications schemes (yes, because we've got a secret 
> special coding technique, we can send 10 bits/second/Hz at -10dB SNR.. 
> it's going to revolutionize wireless broadband, the government is 
> going to spend billions, get in now, while you can)
> BPL was much the same.
> _

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