Intelsat to Buy Gogo's Commercial In-Flight Connectivity Business for $400M
Intelsat expects to close its $400 million buy of Gogo's commercial aviation connectivity business in Q1, it said Monday. It said the deal will expand its footprint in commercial in-flight connectivity by pairing its satellite and ground network with Gogo's…
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installed base of more than 3,000 commercial aircraft. "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. Gogo took a "devastating" Q2 financial hit from the pandemic, said CEO Oakleigh Thorne on a recent investor call (see 2008100010): "If you sell internet on an airplane and no one’s on the plane, it’s tough to make a living.” Intelsat said it will use cash and debtor-in-possession financing from its Chapter 11 bankruptcy reorganization for the deal.