There are unconfirmed reports that indicate satellite giant Intelsat – despite being in Chapter 11 bankruptcy – is looking to buy the commercial aviation portion of in-flight connectivity specialist Gogo.
Gogo announced a few weeks ago that it was looking to sell its commercial aviation division. Gogo said it would retain its private aviation business. Gogo’s share price rocketed 16.2 percent on August 26th on that news.
Bloomberg is reporting that Intelsat could spend up to $500 million on the purchase. Intelsat already has a relationship with Gogo and supplies that company with some satellite coverage and connectivity to Gogo-equipped aircraft around the world.
However, the Covid-19 virus has hurt Gogo quite badly. Gogo’s half-year report reported that the firm’s commercial aviation division suffered revenues down 72 percent over North America and 67 percent over the rest of the world.
This story was authored by journalist Chris Forrester,
who posts for the Advanced Television infosite and is also a
Senior Contributor for Satnews Publishers.