🚀 DISH & DirecTV (Finally) Merge

Plus Gogo to acquire Satcom Direct, $BA and $SPCE settle lawsuit, Impulse Space $150M Series B and more! The latest space investing news and updates.

October 04, 2024

The Space Scoop

Week Ended 10.04.2024

Happy Friday! Two big mergers headline this week's news. Lets get right to it.

Market Max-Q

Forward

Top Stories

1) Dish and DirecTV merge to create America's largest pay-TV provider.

  • In what is a doozy of a deal, PE firm TPG will acquire AT&T's ($T) 70% ownership stake of DirecTV for $7.6B cash and merge it rival Dish. In a separate deal, EchoStar ($SATS) will sell Dish in a $9.8B debt deal at the purchase price of $1 for taking on ~$10B of its debt.

  • The two companies have been trying to merge for decades, after a 2002 attempt was ended by an antitrust lawsuit.

  • The merger depends on an agreement with bondholders to write off about $1.6B of the Dish obligations as well as approval from multiple federal regulators.

  • $SATS shares were down -12% on the news and finished the week -17%.

2) Gogo ($GOGO) to acquire Satcom Direct for up to $635.8M.

  • The acquisition will create an in-flight connectivity provider with the ability to satisfy every segment of business aviation (BA) and military/government mobility markets.

  • “This transaction accelerates our growth strategies of expanding our total addressable market to include the 14,000 business aircraft outside North America," said Gogo Chairman and CEO Oakleigh Thorne.

  • Under the terms of the agreement, Satcom Direct will receive $375M in cash and 5M shares of $GOGO stock ($7.17 per share as of 9/30 closing), and up to an additional $225M in payments tied to performance thresholds over the next four years.

  • The transaction will be financed with a combination of cash-on-hand and $275M in committed new debt.

  • $GOGO shares finished the week -15% lower and are down -35% YTD. 

In Other News

Impulse Space Raises $150M Series B 

The in-space transportation startup, founded by one of SpaceX's earliest engineers, will use the funding to further grow headcount and support ongoing production of both the Helios and Mira vehicles. The round was led by Founders Fund, with participation from returning investors such as Lux Capital and Spring Tide, and new investors DCVC. 

ALLSPACE Raises ÂŁ33M in Funding

 

The startup which describes itself as providing "advanced simultaneous multi-orbit, multi-network connectivity solutions" is progressing toward plans for the commercial launch of its new satellite terminal. The round was led by Boka Group, with participation from Seraphim Space ($SSIT), AE Ventures, and Promus Ventures.

Argo Space Raises $7.9M in Funding 

The orbital transportation spacecraft and water fuel startup will use a majority of the capital toward Argonaut development and fully funding a subscale demonstration mission planned for Q4 2025. The round was led by Crosslink Capital, with participation from existing investors Stellar Ventures and Type One Ventures.

Mynaric Secures $5.5M Bridge Loan 

(SEC)

$MYNA entered into an amendment of its existing $95M loan agreement with its US lenders for a bridge loan secured by the Company and its subsidiaries. The loan will bear interest at SOFR+10% subject to a 2% floor. The bridge loan will mature on November 24th..Shares are down -75% YTD and in need of help.

BlackSky Initiated at 'Outperform' Rating

Wall Streets' Oppenheimer initiated coverage with a $10 per share price target on $BKSY. The analyst behind the note tells investors "it believes the company can grow revenues to the $500M range in the next seven years and free cash flow over $100M."

Chart of the Week

SpaceX Nearing A Record: With one launch to go to break both a new record as well as prior year, SpaceX's Falcon 9 and Starship rockets are currently grounded by the FAA. Where does SpaceX finish the year?

(Source)

Links

• Planet ($PL) Renews 7-Figure Contract With the Federal Police of Brazil• Anduril To Buy Apex Satellite Buses off the Shelf To Launch Faster• BlackSky ($BKSY) Wins ~$6M Contract Expansion With Legacy International Defense Sector Customer• OPUL Jets Partners With Starlink To Provide Internet for Its Fleet• Redwire ($RDW) To Provide Onboard Computer System for ESA’s Hera Mission• BlackSky ($BKSY) Wins 5-Year NGA Luno A Contract Valued up to $290M• AST SpaceMobile ($ASTS) Completes Redemption of Public Warrants• Boeing ($BA) & Virgin Galactic ($SPCE) Settle Lawsuit Over Dispute on Mothership Work

Opinion

• The Airline Industry Is Moving to Free Wi-Fi and Starlink• Intuitive Machines ($LUNR) Is About To Blow the Thrusters for Cash Flow• EchoStar ($SATS) Gets Some Much-Needed Breathing Room, but Little Else• Rocket Lab ($RKLB): Poised To Ride Neutron Higher• BlackSky ($BKSY): Progress Continues

Earnings Calendar

• $IRDM: Oct 17 - Before Market Open• $LMT: Oct 22 - Before Market Open• $BA: Oct 23 - Before Market Open• $NOC: Oct 24 - Before Market Open

*Company confirmed dates only.