ROSH HA’AYIN, Israel-Hoping to continue its strong growth potential in the future, Partner Communications Co. Ltd., the only Global System for Mobile communications operator in Israel, formed a new company that will identify opportunities for investment and cooperation with start-ups with the potential to develop leading GSM wireless applications and services.
PCC’s board of directors approved the formation and said it is prepared to arrange appropriate debt financing and invest up to $100 million in the development of business and investment opportunities in this area.
PCC also reported an agreement with Net2Wireless Corp. for evaluation and development of a video and other value-added services platform, and for the grant of an equity option in Net2Wireless to PCC.
The video platform, currently in early testing stages, is designed for multimedia delivery, real-time streaming video content, recording video images and viewing of prerecorded media clips over wireless devices.
The equity option grants PCC an option to purchase up to an aggregate of more than 2.7 million shares of the common stock of Net2Wireless at an exercise price of approximately $5.5 million.
In other news, PCC reported fourth quarter and audited results for the year ended Dec. 31, 1999.
For the year, PCC reported an operating loss of $116.5 million on revenues of $218.3 million. For the fourth quarter, PCC revenue totaled $84.2 million with net loss of $23.8 million.
“During quarter four, PCC’s financial position was significantly strengthened by our successful [initial public offering] in October which raised $525 million, before commissions and expenses,” noted Kevin Russel, chief financial officer for PCC.
