Mobile phone pioneer Craig McCaw has decided not to pursue his proposed investment in the ailing Iridium satellite phone venture.
McCaw indicated last month that he was interested in combining ICO Global Communications and Iridium satellite phone systems with his own Teledesic project to create a global voice and data network that could also provide customers with high-speed internet access.
But Eagle River Investments, of which McCaw is chairman and chief executive, said today that it will focus its satellite-related investments on data-centric companies such as ICO and Teledesic. McCaw is also chairman and chief executive of Teledesic, a joint venture with Microsoft chairman Bill Gates.
Eagle River said: "There are closer synergies between ICO and Teledesic and the services they will provide to customers worldwide."
McCaw had been proposing to take control of Iridium, which is under Chapter 11 bankruptcy protection, with an investment of about $600m (£379m).
Iridium responded to the move by saying that it is still committed to selling its assets and is aggressively pursuing other potential buyers. The US Bankruptcy Court for the Southern District of New York postponed its hearing, which was scheduled for Friday, at the company's request.
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