Aerie Sops Up Metricom For $8.25 Million

Metricom shut down its popular Ricochet wireless network after it filed for Chapter 11 Bankruptcy protection from its creditors in July 2. Denver-based Aerie Networks to pick up where it left off?

by Michael Singer of siliconvalley.internet.com [November 5, 2001]

Broadband provider Aerie Networks has the green light to purchase most of Metricom's assets for $8.25 million.

A U.S. Bankruptcy Court in San Jose, California approved the sale except for about $134 million, which the company owes to creditors. The sale should be finalized next week.

Denver-based Aerie declined to comment on the purchase or the ruling, planning instead on making its formal announcement on this week.

San Jose, California-based Metricom shut down its popular Ricochet wireless network after it filed for Chapter 11 Bankruptcy protection from its creditors on July 2.

Since that time, at least five separate companies including Aerie put in bids for Metricom's assets, once valued at $1 billion.

Two months ago, Aerie unsuccessfully bid on Metricom's assets for $20 million saying it wanted to re-launch the Ricochet service in California and Colorado.

At one time Metricom's Ricochet system reached out to 51,000 subscribers in 14 states. The wireless network was praised for its 128Kb speeds but lauded for its high monthly fees and restriction to the larger metro areas.

Those who did use the service found it to be invaluable. At one point, the Port Authority in New York City even suggested that the company keep the network running, while Manhattan worked to get its own system back online following the September 11 attacks.

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