LONDON NextWave Wireless Inc. (San Diego, Calif.) has sold a 75 percent stake in its IP Wireless mobile chip and systems subsidiary in a management buyout for just $1 million.
NextWave acquired the assets of IP Wireless (Chippenham, England) in April 2007 for a reputed $100 million in a cash and stock deal.
IPWireless was founded in 1999 and became a pacesetter as a supplier of TD-CDMA mobile broadband technology. Its TDtv mobile TV technology has also been tested by several European mobile network operators.
Nextwave announced a major restructuring in September that included a number of divestments, including its wireless infrastructure business. It also warned that it was facing bankruptcy if it could not raise a sufficient amount of cash. It raised $100 million in financing from two firms in October.
The majority stake in IP Wireless has been sold to a holding company, IPW Holdings, and Dr Bill Jones, one of the founders of IP Wireless.
Dr Jones has resigned his positions as a member of the board of NextWave and chief executive of NextWave Products to focus his efforts on IPWireless.
The entire management team of IPWireless will transfer from NextWave to lead IPWireless as it continues to develop and supply mobile broadcast and broadband solutions based on 3GPP standards.
NextWave also said in a statement Friday (Dec. 26) the employees of IPWireless had agreed to waive any continuing rights under the IPWireless stock-bonus plan established by NextWave.
Meanwhile, NextWave's plans to sell its U.S. spectrum holdings have been delayed by market conditions and regulatory issues, and an Israeli-based unit has filed for bankruptcy.
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