What happened
Shares of Globalstar Inc. (GSAT 3.17%) were up 18.3% as of 1:50 p.m. EDT on Friday after reports that the low-Earth orbit satellite specialist may be putting itself up for sale.
So what
According to sources speaking to Bloomberg today, Globalstar is in the early stages of "working with financial advisors on a potential sale." Then later this afternoon, analyst Jahanara Nissar of Odeon Capital mused that potential suitors could include the likes of Google parent Alphabet, Facebook, Microsoft, Amazon.com, AT&T and Verizon. Note that just yesterday Verizon agreed to acquire wireless spectrum specialist Straight Path Communications in a deal worth $3.1 billion.
IMAGE SOURCE: GLOBALSTAR.
Now what
Today's news comes than a month after initial reports suggested Globalstar could be a buyout target. But investors should be aware there are no guarantees that Globalstar will find a willing suitor. If a deal can't be reached, that could be catastrophic for investors amid lingering questions of how long it can survive in its current unprofitable state. But if a bidding war erupts over its potentially valuable assets, GlobalStar shareholders could be handsomely rewarded in the process.
