AST SpaceMobile partners with Verizon

AST SpaceMobile, a provider of satellite-to-phone services, experienced a significant surge in its stock price following the announcement of a partnership with Verizon. This collaboration comes on the heels of a recent agreement with AT&T to offer remote coverage across the United States. The company is developing satellites to provide broadband service directly to standard smartphones, tapping into the growing market for "direct-to-device" communications. AST SpaceMobile's chairman and CEO, Abel Avellan, praised the Verizon and AT&T partnerships for enhancing connectivity in remote areas and eliminating dead zones across the country. Following this news, AST SpaceMobile's stock soared by 69% in trading, closing at $9.02 per share. This spike represents the company's largest single-day increase since its initial public offering via a SPAC in 2021, with shares quadrupling over the past month. As part of the deal with Verizon, AST SpaceMobile will receive a $100 million capital injection, including $65 million in commercial service prepayments and $35 million in debt through convertible notes. However, $45 million of the prepayments are subject to conditions such as regulatory approvals and finalizing a commercial agreement. This partnership with Verizon follows a similar pattern to AST SpaceMobile’s collaboration with AT&T. Back in January, AT&T co-invested debt in the company alongside Google and Vodafone. CNBC reported that AST’s CSO Scott Wisniewski explained that the companies established a detailed commercial agreement earlier this month, outlining how they will “ultimately offer service together.” AT&T has worked hand-in-hand with AST SpaceMobile for six years, even lobbying the FCC for the necessary approvals to provide direct-to-smartphone satellite services in the U.S. Earlier this month, the two firms solidified a definitive revenue-sharing deal extending to 2030.

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