I - Why Gogo Stock Just Popped 28%
Shares of in-flight airplane internet broadband provider Gogo (NASDAQ: GOGO) are soaring today, up 27.6% through 12:25 p.m. EDT, after satellite communications company Intelsat (NYSE: I) announced its intention to acquire Gogo's commercial aviation business in a $400 million cash buyout.
For Intelsat, the acquisition delivers 21 new commercial airline customers, including nearly half of the world's top 10 global carriers, to which Intelsat can now sell broadband access through its constellation of high-flying communications satellites.
"Consumer demand for in-flight connectivity is expected to grow at a double-digit rate over the next decade, notwithstanding the impact of COVID-19," said Intelsat CEO Stephen Spengler in a statement, providing a ready-made avenue to sales growth for the company.