Wireless pioneer Craig McCaw has resigned as chairman of Clearwire, the Kirkland broadband wireless company that he founded seven years ago. McCaw's decision comes at a tough time for the company.
Clearwire -- backed by the likes of Intel, Comcast, Google and Sprint -- cut 15 percent of its staff in November amid financing challenges. The company also is facing new competition from Verizon, which just recently started aggressively promoting a rival mobile broadband service in many of the markets where Clearwire operates. Meanwhile, Clearwire's stock is down nearly 24 percent on the year.
McCaw had served as chairman for seven years, and his departure has raised some alarm bells about the future of the company.
Stock analyst Michael Mahoney tells Bloomberg News that McCaw in many respects "is Clearwire," and his resignation from the board (effective today) could raise concerns that the company is close to hitting the wall.
It also may signal that McCaw is stepping out of the way so a new ownership structure can be put in place.
According to a SEC filing, McCaw's resignation is not due to "any disagreements with the Company on any matters relating to the Company’s operations, policies, or practices." McCaw's investment firm, Eagle River, still retains the right to to nominate a director to Clearwire board. The SEC filing indicated that Eagle River intends to nominate Ben Wolff, the former CEO of Clearwire.
There's been a decent amount of turnover on the Clearwire board in recent months. In September, three Sprint executives -- including Dan Hesse, Keith Cowan and Steven Elfman -- announced plans to step down from the board. The company said that the executives resigned "out of an abundance of caution to address questions raised by Clearwire regarding new developments in antitrust law."
Clearwire's stock is down more than one percent this morning, trading at $5.17. The company went public in 2007, closing its first day of trading at $24.52. "
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