Companies will spin out all the cr-ppy businesses into an independent HoldCo that lives separately. Think back when Qualcomm spun all their spectrum assets into a separate company (read as all the spectrum debt magically left their books). Or Comcast's recent announcement to spin out their declining cable TV biz. Or Dish selling their broadcast TV biz to DirecTV so that Dish could focus on its wireless pivot. The sh---y businesses are left to fend for themselves (read as good riddance and off our balance sheet) while the remaining survivable business carries on its direction (smaller but more focused potential). No doubt some fine private equity snakes (err...professionals) will be involved to shepherd the HoldCo to its ultimate death out back behind the shed while profiting from every last scrap.
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Nah. Another grasp at a straw that Elon and DOGE will remove. Bye bye GEO
Another deal announced today that Starlink couldn’t win
Ask Blockbuster, neither did Netflix. What was left didn't matter.
It shows Starlink isn't stealing all of Viasat's business.
Will it affect the stock price? Does that heal the errors from designing the wrong network? Can that prevent a certain number of layoffs? I can't get to a yes on any of those questions.
They just announced another half billion dollar contract
If you like a case study we have one at Gogo. After a day in the sun, Gogo figured there was no profit in airline pax comms via GEO so spun that bit out to Intelsat. Leaving behind a small profitable Biz Av Gogo, worth (more or less) the same as Almighty VSAT.
Bingo! They never cared about investing in the gov business. Only to the point so they could use that revenue to fund the satellite business.
Doesn’t seem like anyone in leadership has any interest in what the government business doing though