European Commission Investigates Viasat’s Proposed Acquisition of Inmarsat Over Potential Reduction of Competition in In-Flight Connectivity Services Market.

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On January 22nd, the European Commission announced that they are launching an investigation into Viasat ($NASDAQ:VSAT)’s proposed acquisition of Inmarsat. Viasat is a global communications company that provides high-capacity broadband services for customers around the world. Through their satellite and wireless networks, they are able to offer services such as internet access and entertainment for commercial airline passengers. Inmarsat is also a communications giant, and is one of the world’s leading providers of global mobile satellite communication services. This could potentially result in higher prices or worse terms and conditions, which would have a negative impact on the customers. The EC will be assessing the competitive effects of the merger by looking at both the combined market share of Viasat and Inmarsat in Europe, as well as their capacity to raise prices or reduce quality of service.

The EC also noted that they are taking into account the new market entrants and technological changes in the industry in their assessment of the proposed merger. This is to ensure that any potential reduction of competition is not due to other factors such as new competitors entering the market, or new technology being introduced. They will also be considering how the merger would impact customers outside of Europe, as it is possible that any potential reduction in competition could have an effect on customers worldwide. At this stage, it is unclear what the outcome of the investigation will be, but it is certain that Viasat and Inmarsat will be closely scrutinised throughout. The EC’s ultimate goal is to ensure that any potential reduction in competition in the satellite-based broadband in-flight connectivity services market does not result in a lessening of choice or quality for passengers.

Market Price

The Commission expressed concerns that the acquisition might reduce competition in the market, leading to higher prices and lower quality of services for consumers. The news caused Viasat‘s stock to open at $30.7 and close at $31.4, a 1.9% increase from its previous closing price of $30.8. This suggests that investors have faith that the transaction will be approved despite the European Commission’s concerns. The Commission will assess the impact of the merger on the market to ensure that it does not have any anticompetitive effects. This includes evaluating whether the acquisition will lead to higher prices or fewer choices for airlines and passengers, or any other reduction in quality of services. It is expected to take several months before the Commission makes a decision on whether or not to approve the merger. The merger also has the potential to increase competition in the in-flight connectivity industry, as the combined company would have access to more resources and technology than either company would have on its own.

However, the Commission will need to carefully evaluate the impact of the merger on competition and consumer choice before making a decision. Overall, investors appear to be confident that the Commission will approve Viasat’s proposed acquisition of Inmarsat, given the positive reaction of the stock market on Monday. The Commission’s investigation may take several months to complete, but it is expected that their ruling will have a significant impact on the future of in-flight connectivity services. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Some of the financial key ratios for Viasat are shown below. More…

Analysis

GoodWhale performed an analysis of VIASAT‘s fundamentals and based on their Risk Rating, it is a medium risk investment. This means that while the company is stable and has potential, there are some risks that should be taken into account. Financial risks include the fact that debt levels have increased in the past year, while the current liabilities are much higher than the current assets. Business risks may include poor financial management, limited access to capital, or lowered sales due to market conditions. GoodWhale also identified three risk warnings in the balance sheet, cashflow statement, and non-financial areas. These include reduced profits, a decrease in liquid assets, and high levels of debt. Factors like these are important to consider before investing in a company, as they can potentially lead to a large loss of capital. In order to gain access to GoodWhale’s full analysis, it is necessary to register with the company. By doing so, potential investors can get a full grasp of VIASAT’s fundamental strengths and weaknesses, helping them decide whether this is a good investment for them or one which should be avoided. More…

Peers

It has a portfolio of products and services for both commercial and government markets. The company operates in three segments: Satellite Services, Ground Networks, and Commercial Networks. Viasat Inc was founded in 1986 and is headquartered in Carlsbad, California. Wialan Technologies Inc is a provider of wireless networking solutions. The company offers a range of products and services for both commercial and government markets. Wialan Technologies Inc was founded in 2002 and is headquartered in Carlsbad, California. ADVA Optical Networking SE is a provider of optical and Ethernet-based networking solutions. The company offers a range of products and services for both commercial and government markets. ADVA Optical Networking SE was founded in 1984 and is headquartered in Martinsried, Germany. Cermetek Microelectronics Inc is a provider of microelectronic solutions. The company offers a range of products and services for both commercial and government markets. Cermetek Microelectronics Inc was founded in 1968 and is headquartered in Santa Clara, California.

– Wialan Technologies Inc ($OTCPK:WLAN)

ADVA Optical Networking SE is a German telecommunications company that provides fiber-optic data transmission systems and equipment for data centers, telecommunications service providers, and enterprises. The company has a market cap of 1.07B as of 2022 and a Return on Equity of 4.24%. The company’s products include Ethernet switches, routers, and transponders.

Summary

Viasat Inc. is currently under investigation by the European Commission for its proposed acquisition of Inmarsat. Investors should consider the potential risks associated with this acquisition, such as possible government intervention, as it could have a negative impact on Viasat’s stock price and future profits. Additionally, investors should watch for updates from the European Commission to gain a better understanding of the outcome of the investigation. Lastly, investors should research the potential benefits of the proposed acquisition, such as increased market share, in order to make an informed decision about investing in Viasat.