AST SpaceMobile shares surge on US$100M Verizon deal
BNN Bloomberg
AST SpaceMobile Inc. shares gained by the most ever after Verizon Communications Inc. said it will invest US$100 million in a partnership with the satellite communications company intended to challenge Elon Musk’s SpaceX.
Shares of AST rose by a record 69 per cent to close at $9.02. The partnership marks a rare move for Verizon and AT&T, as the two join forces with the same aerospace company in a bid to challenge SpaceX.
AST announced a similar agreement with AT&T Inc. two weeks ago. Now with both deals in hand, the Midland, Texas-based company said it will be able to provide 100 per cent coverage of the continental U.S. from smartphones to its future planned satellite system, utilizing the radio frequencies allotted to the two telecom giants by the Federal Communications Commission.
“This partnership will enhance cellular connectivity in the United States, essentially eliminating dead zones and empowering remote areas of the country with space-based connectivity,” Abel Avellan, founder and chief executive officer of AST, said in a statement.
