As you know, Harbinger Capital currently has a big bet going on a wireless company called LightSquared. Should it succeed, Phil Falcone will make billions and his investors will receive the triple digit returns they scored on subprime. Should it fail…we don’t even want to go there but someone will need to take in the family’s award-winning singing and dancing pig, who’s made it clear he “doesn’t do” 2-bedroom rentals North of 86th Street. So far, unfortunately, LightSquared, illiquid shares of which were recently awarded to redemption-seeking investors, has encountered a few bumps in the road (as one often does when one is doing groundbreaking, visionary-esque work). Most recently the company has been making the case that its satellite system will be huge for “coordinating enforcement and emergency response teams during natural disasters, like Hurricane Katrina.” On the flip side, according to a new study by the FAA, it might kill a few hundred people.
A Federal Aviation Administration study quietly released this month says the proposed venture — which could make or break Falcone’s rocky career — may cost 794 lives in aviation accidents over 10 years with disruptions to satellite-aided navigation.
But that’s just ballparking it and even if the number is accurate, every great step forward in the history of man comes with collateral damage.
Falcone 4G: Kill Or Cure [NYP]