AST SpaceMobile Stock Surges 69% After Verizon Satellite Internet Deal

Satellite-to-phones service provider AST SpaceMobile announced a deal with Verizon to provide remote coverage across the United States. "Verizon's deal effectively includes a $100 million raise for AST, as well, in the form of $65 million in commercial service prepayments and $35 million in debt via convertible notes," reports CNBC. "The companies said that $45 million of the prepayments 'are subject to certain conditions' such as needed regulatory approvals and signing of a definitive commercial agreement." Shares of AST jumped 69% in trading to close at $9.02 a share -- the largest single day rise for the company's stock since it went public in 2021. From the report: AST SpaceMobile is building satellites to provide broadband service to unmodified smartphones, in the nascent "direct-to-device" communications market. [...] The Verizon partnership follows a similar pattern to AT&T's work with AST. Back in January, AT&T was a co-debt investor in the company alongside Google and Vodafone. The companies then established the commercial agreement earlier this month, which "lays out in much more detail how we will ultimately offer service together," AST's Chief Strategy Officer Scott Wisniewski said in a statement to CNBC. [...] AST expects to launch its first five commercial satellites later this year.

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