funding: November 2007 Archives

EarthLink, Inc. announced that it has entered into an agreement under which SK Telecom may invest up to $270 million in equity contributions to Helio ( the joint venture for wireless voice and data services that the two companies formed in 2005.

Both Helio and Earthlink were started by Web Wunderkind Sky Dayton. Here’s Wired’s outlook on the matter:

“Or put simply — SK Telecom is Helio’s new sugar daddy. The expensive nature of the MVNO business model has already thinned a lot of Helio’s competition, so this doesn’t come as much of a surprise. However, we’re curious to see how long SK Telecom can bring home the bacon on this pricey venture without Earthlink’s financial support.”