Market Overview

Gogo Up 6% On Rumor Verizon Mulling Bid

Gogo (NASDAQ: GOGO) shares were sharply higher Thursday afternoon on a rumor that it could be bought out by Verizon Communications (NYSE: VZ).

Gogo, with $1.43 billion in market capitalization, offers broadband service on more than 2,000 commercial aircraft and has estimated the market opportunity for commercial aircraft is $402 million.

On Wednesday, an industry news website called Runway Girl Network said "Wall Street is now buzzing" that the far-larger Verizon might acquire Gogo or form a joint venture or partnership.

AT&T in April announced the launch of a high-speed wireless in-flight service for airlines passengers that will compete with Gogo.

AT&T's move is "doubtlessly giving food for thought" to Verizon and other major telecommunications companies, Runway Girl said.

Gogo traded recently at $17.78 a share, up 5.9 percent.

Posted-In: News Rumors Movers

 

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