Iridium sold

Prospective bidders have been trying to take Iridium off Motorola’s hands for months. Earlier this week, the satellite system finally found a new parent. A United States Bankruptcy Court judge in Manhattan granted a group led by former airline executive Dan Colussy the rights to the Iridium system for $25 million.

The company, which will be called Iridium Satellite LLC, reportedly plans to re-launch satellite communications services within 60 days to industries that have a need for satellite communications. Industries could include those that operate in remote locations, like the military, maritime and aviation.

“They need to get a good plan before they go forward,” said Greg Caressi, a research manager of the satellite communications group at Frost & Sullivan.

While this recent move did not seem to shock the industry, some analysts were surprised that it took this long to settle the Iridium deal. “To me the bigger surprise was how long it has taken considering the [end] cost. The assets purchase are so cheap most of the negotiating had to be around operational costs,” Caressi said.

The acquiring could try to do something with low data rates and voice, he continued. Or they could go back to a plain voice plan. “Although I am withholding judgement until 60 days are up and I see the plan.”

Motorola, which will retain a small stake in the new Iridium, had threatened to destroy the 88 satellites if a buyer was not found. Thus far, Iridium has acquired a loss of over $6 billion, $3.5 billion of which affected Motorola directly.