Earthlink CEO Has No Plans To Sell Off Helio Stake; Remains Hopeful

We reported on Earthlink’s Q3 earnings announcement earlier today. Now, from the conference call, Earthlink (NSDQ: ELNK) CEO Rolla Huff on his continued hopes on Helio: “While we all know there’s been some disappointing stories in this space, Virgin Mobile (NYSE: VM) [USA] hopefully has proven that value can be created with the right business model. While we’ll have the option to participate in future funding rounds that might be required, we have stopped our participation in the current funding rounds. We believe our preliminary agreement with SKT will put value in the $210 million that had previously been invested by EarthLink.”

The amended Earthlink-SK Telecom (NYSE: SKM) agreement over additional money investment from SKT, and no additional money from ELNK, is yet to be finalized, but will soon, The broad terms were disclosed by the two earlier last month. ..the detailed agreement when signed would disclose the valuation at which SK Telecom would be putting the money in, among others, Huff said.

“I think you asked the question about can we sell our Helio stake? Look, I think that the investment that we’ve made there absolutely has value. We have no plans to go out and sell it. It’s a growing business. It’s a business that we support. We clearly understood that putting needed cash into that business was not in the best interest of our shareholders from here on out. We’re going to continue to be part of the governance structure and I think I’ve been saying all along, we believe there’s value in this business.”

loading

Comments have been disabled for this post