Join gaming leaders, alongside GamesBeat and Facebook Gaming, for their 2nd Annual GamesBeat & Facebook Gaming Summit | GamesBeat: Into the Metaverse 2 this upcoming January 25-27, 2022. Learn more about the event. 


Intel announced today it expects to lose between $1.1 to $1.2 billion on its investments, a huge increase from the previous estimate of a $50 million loss. Most of that loss comes from Intel’s investment in Clearwire, which created a joint venture with Sprint to build a national mobile network using Intel’s WiMax technology. Clearwire’s stock has dropped more than 70 percent since the deal was announced in May, resulting in a $950 million “impairment charge” for Intel.

That comes less than a month after Intel Capital’s Arvind Sodhani told us he was excited, rather than worried, to have sunk so much of Intel’s portfolio into Clearwire. Of course, it must have been obvious even then that the investment would end the year as a big loss. (Fellow Clearwire investor Time Warner faces a similar loss.) While the Clearwire effort, which Intel hopes will boost sales of its chips, is off to a bad start, it’s too early to give up on it. After all, the deal was only approved in November, and Clearwire just announced super-cheap mobile wireless plans in Portland.

There’s more bad news for Intel, which also released preliminary fourth quarter earnings. Revenue is projected to be $8.2 billion, down 23 percent from the same period last year. The chip maker blames weakening demand for PCs, so this probably isn’t a good sign for the rest of the PC market.

VentureBeat

VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
  • up-to-date information on the subjects of interest to you
  • our newsletters
  • gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
  • networking features, and more
Become a member