Unconfirmed reports say that 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 per cent August 26th on the news.
Bloomberg is reporting that Intelsat could spend up to $500 million on the purchase.
Intelsat already has a relationship with Gogo and supplies Gogo with some satellite coverage and connectivity to Gogo-equipped aircraft around the world.
However, the Covid-19 virus has hurt Gogo very badly. Gogo’s half-year report saw it say that its commercial aviation division suffer revenues down 72 per cent over North America and 67 per cent over the rest of the world.