What happened
Shares of wireless network specialist Boingo Wireless (WIFI) jumped sharply on Tuesday, rising as much as 26%. As of 12:22 p.m. EST today, the stock was up 19.2%.
The stock's gain follows commentary from management in the company's fourth-quarter earnings release that stated Boingo has received "multiple inquiries regarding a potential strategic transaction."
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So what
Boingo said its board of directors is engaging with advisers to assess opportunities for strategic transactions. The company also said it is suspending its financial guidance in the meantime.
Commentary from management on inquiries regarding a strategic transaction comes as Boingo reported $64.1 million in fourth-quarter revenue, down 5.5% year over year. Furthermore, the tech company's loss per share was $0.12, worse than a profit of $0.01 in the year-ago period.
Analysts on average were expecting revenue of $69.7 million and a loss per share of $0.11.
Now what
Investors should keep in mind that no deal for Boingo Wireless to be acquired has been announced. And there are no guarantees that a deal will be announced at all.
