Ann: EOS Acquires US Space Communications Business, page-50

I think this transaction shows the ambition for the Space Comms business.

Allows the MEO EOS satellite the ability for a Satellite Owner to both communicate with LEO satellites giving real time communication and control ability (eg for a Ground mapping company to have real time mapping focus) something that ordinarily cant be achieved without line of sight communications or a wide network of ground stations. This also complements the Space Situational Awareness market through real time control of satellites and therefore in essence a $10m spectrum grab given expected crowding. Long term the MEO satellites will be a platform for optical bandwidth with obvious benefits over microwave. While also leveraging EM Solutions ground technology.

On the other hand, Audacy shuts its doors after defaulting on its debt and lack of investors and the failure of a demonstration satellite launch. Hopefully EOS is able to navigate the capex requirements and achieve firm customer orders to underwrite capex. Seems an ambitious project and hopefully a JV with an established player seems a logical step. But you can obviously see the logic and the strategy behind this acquisition.

Space Comms not valued much by the market in the current SP.

Further, surely we get some first revenue from SSA contracts this year.

Market wont be able to ignore space for that much longer.