Sprint Backs Out of LightSquared Deal – Will Return $65 Million to the Company
As had been rumored, Sprint has officially backed out of their deal with LightSquared after the company failed to clear regulatory hurdles caused by their network’s potential to interfere with GPS services. Sprint will terminate the deal as of today and return $65 million to LightSquared according to a report in the Wall Street Journal (see this non-paywalled CNET report instead). The deal cancellation comes after Sprint gave LightSquared two extensions to deal with their GPS-induced headaches. That $65 million isn’t expected to help LightSquared much — given their only recourse is a likely futile lawsuit against the FCC based around the idea that the FCC essentially led them on.
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