Hey, so, what do you think is gonna happen next?
Like, everyone knows about the problems Viasat's facing, right? The stock price is tanking, and there's no clear plan for how to fix things.
I'm not worried about the stock price as much as I'm worried about the lack of direction. Companies can bounce back from tough times, but they need a new strategy or a new product, or a breakthrough new technology to shake things up. Right now, I don't see anything like that on the horizon.
Maybe an acquisition could save the day and a snall number of employees, but who would want to take on all our debt? And what about the next satellites? We're supposed to Entry into Service VS3 F3 in mid-late 25, but there's no launch date yet...
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What is this website even for? Original post was just stock speculation, I really don't think they ever worked for ViaSat.
Also stock price seems ok now, how did your puts fare?
Stock is up because that’s what it always does in the days before earnings. It will probably collapse on Thursday.
Stock is up today for no apparent reason. Acquisition news coming?
When faced with this stage of the declining businesses (res, av, maritime) that may be holding back one or two performing businesses (gov), sometimes companies will spin out all the cr-ppy businesses into an independent HoldCo that lives separately. Think back when Qualcomm spun all their spectrum assets into a separate company (read as all the spectrum debt magically left their books). Or Comcast's recent announcement to spin out their declining cable TV biz. Or Dish selling their broadcast TV biz to DirecTV so that Dish could focus on its wireless pivot. The sh---y businesses are left to fend for themselves (read as good riddance and off our balance sheet) while the remaining survivable business carries on its direction (smaller but more focused potential). No doubt some fine private equity snakes (err...professionals) will be involved to shepherd the HoldCo to its ultimate death out back behind the shed while profiting from every last scrap.
Defense business isn't a big enough percent of revenue to promote to primary.
I dont agree.
Defense is our core asset.
The rest of the business s@cks.
Domestic broadband is dead. Aviation is in freefall. Enterprise is a joke. Maritime is heading for a slow death.
Here is what they pay Guru $20 million to come up with. I'll sum it up here what happens next:
- ) They need to raise cash to pay down debt and make their next move/pivot. They will look to do "non-core asset monetizations". In other words, sell off parts of their defense business.
- ) They need to launch F2 and F3 Successfully. This will allow them to increase capacity and revenues. Meanwhile, they will continue cutting costs/CapEx to become cash flow positve.
- ) Once they become cashflow positive, their credit ratings will rise. This will allow more institutional funds to come into the stock. The stock price will rise
- ) They at this point will either look to sell the company entirely or issue more equity at the now higher stock price to fund their next round of tech.
They're commited to launching more GEOs. What else is there to know?