Gogo buys competitor Satcom Direct
Gogo, which provides internet access for business jets, has now purchased its main competitor Satcom Direct, in order to provide a service that can better compete with Starlink.
Satcom Direct would get $375 million in cash and five million shares from Gogo under a deal announced Sept. 30, subject to regulatory approvals, and up to $225 million in extra payments tied to performance targets over the next four years, suggesting around $636 million in maximum total proceeds.
Gogo has historically dominated the small and midsize part of the business aviation market and connects about 7,000 planes, according to William Blair analyst Louie DiPalma, while Satcom Direct has a commanding market share for long-haul.
Combined, William Blair estimates the companies are providing Wi-Fi to around 8,200 of the 9,200 business jets that currently have connectivity — or nearly 90% of the market.
Gogo’s share price has dropped 70% since 2022 in the face of Starlink’s recent signing of numerous airline companies. The stock market obviously thinks Starlink is eventually going to capture the business jet customer as well. This deal will possibly allow Gogo to compete more effectively.
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Gogo, which provides internet access for business jets, has now purchased its main competitor Satcom Direct, in order to provide a service that can better compete with Starlink.
Satcom Direct would get $375 million in cash and five million shares from Gogo under a deal announced Sept. 30, subject to regulatory approvals, and up to $225 million in extra payments tied to performance targets over the next four years, suggesting around $636 million in maximum total proceeds.
Gogo has historically dominated the small and midsize part of the business aviation market and connects about 7,000 planes, according to William Blair analyst Louie DiPalma, while Satcom Direct has a commanding market share for long-haul.
Combined, William Blair estimates the companies are providing Wi-Fi to around 8,200 of the 9,200 business jets that currently have connectivity — or nearly 90% of the market.
Gogo’s share price has dropped 70% since 2022 in the face of Starlink’s recent signing of numerous airline companies. The stock market obviously thinks Starlink is eventually going to capture the business jet customer as well. This deal will possibly allow Gogo to compete more effectively.
The support of my readers through the years has given me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Four years ago, just before the 2020 election I wrote that Joe Biden's mental health was suspect. Only in this year has the propaganda mainstream media decided to recognize that basic fact.
Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuses to recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
Please consider supporting my work here at Behind the Black.
You can support me either by giving a one-time contribution or a regular subscription. There are five ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation:
5. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above. And if you buy the books through the ebookit links, I get a larger cut and I get it sooner.
related….
“DirecTV announced an agreement to buy the Dish satellite TV and Sling TV streaming business from EchoStar for a nominal fee of $1 in what the companies called a debt exchange transaction. DirecTV will take on $9.75 billion of Dish debt if the deal is completed. In a related transaction also announced today, private equity firm TPG plans to buy AT&T’s 70 percent stake in DirecTV. TPG already owns the other 30 percent of DirecTV.
Oof. That means monopoly pricing for anybody still paying for satellite TV programming. And, of course, the only channels worth watching anymore are all only available on the most expensive package!
Big D:
It’s going to get worse on a number of levels; Skydance just merged with Paramount. More and more free streaming stuff is going behind paywalls.
Not in an overly rural area but always subjected to monopolistic control until recently.
Had Dish for TV for some time, but it became very expensive, and I became too old to go up on the roof in the Winter and shovel the dish off. Seriously considered a Starlink but they (Frontier) just wired up our area with fiber-optic.
wayne,
It is my understanding that DirectTV offers both satellite and streaming delivery options. I do not know if Dish offers a streaming option, but if you have Internet access, DirectTV (or various other providers) may have something for you that would eliminate the need for a satellite dish.