AST SpaceMobile secures access to 45 MHz of mid-band spectrum

MIDLAND, Texas - AST SpaceMobile (NASDAQ:ASTS), whose stock has surged nearly 270% over the past year and currently trades near its 52-week high of $39.08, has reached a settlement agreement with Ligado Networks, Viasat, and Inmarsat that will provide the company with long-term access to up to 45 MHz of lower mid-band spectrum in the United States and Canada, according to a press release statement. InvestingPro analysis suggests the stock is currently trading above its Fair Value.

The agreement, which remains subject to court approval expected by the end of June, would grant AST SpaceMobile spectrum usage rights for over 80 years. This includes up to 40 MHz of L-Band MSS spectrum held by Ligado, plus access to an additional 5 MHz in the 1670-1675 MHz Band in the United States.

Under the terms of the settlement, Ligado will receive approximately $550 million, with $535 million going to Inmarsat. AST SpaceMobile has secured a $550 million financing commitment for this transaction in the form of a non-recourse senior-secured delayed-draw term loan facility. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 10.62, suggesting adequate resources to meet its payment obligations. Get access to 15+ additional ProTips and comprehensive financial metrics with InvestingPro.

The company, now valued at $12.12 billion by market capitalization, has agreed to make staged payments ahead of closing, including $420 million to Inmarsat on October 31, 2025, $100 million on March 31, 2026, and $15 million upon receiving regulatory approval and closing. These payments will be subject to a backstop commitment providing for a full refund if regulatory approvals are not obtained.

AST SpaceMobile currently operates five BlueBird satellites in low Earth orbit, each featuring approximately 700 square feet of communications arrays. The company’s next-generation Block 2 BlueBirds, with up to 2,400 square-foot arrays, are designed to deliver up to 10 times the bandwidth capacity, enabling peak data transmission speeds of up to 120 Mbps.

The transaction closing remains subject to regulatory approvals and other conditions. AST SpaceMobile plans to file additional details with the SEC on Form 8-K within four business days following approval of the settlement. Analysts project revenue growth of 12.74% for fiscal year 2025, reflecting potential market opportunities from this spectrum acquisition. For detailed analysis and valuation metrics, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, AST SpaceMobile reported its Q1 2025 earnings, revealing a mixed financial performance. The company posted an earnings per share (EPS) of -$0.20, surpassing analyst expectations of -$0.26. However, its revenue fell short at $7.18 million, compared to the anticipated $10.94 million. AST SpaceMobile also announced its inclusion in the Russell 1000 Index, reflecting its growing market capitalization and increased visibility among investors. Analysts at Scotiabank reiterated a Sector Outperform rating for AST SpaceMobile, maintaining a price target of $45.40, while Cantor Fitzgerald upheld an Overweight rating with a $30.00 target. The company also made changes to its corporate governance, allowing the removal of directors by written consent. Additionally, AST SpaceMobile is progressing with its partnership with Blue Origin for satellite launches, which could potentially expand to involve Amazon’s Project Kuiper. The company expects its 2025 revenue to range from $50 million to $75 million, with a significant portion anticipated in the second half of the year.

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