Personal Finance

Why Globalstar, Inc. Stock Popped Today

Globalstar satellites

What happened

Shares of Globalstar Inc. (NYSEMKT: GSAT) were up 18.3% as of 1:50 p.m. EDT on Friday after reports that the low-Earth orbit satellite specialist may be putting itself up for sale.

So what

According to sources speaking to Bloomberg today, Globalstar is in the early stages of "working with financial advisors on a potential sale." Then later this afternoon, analyst Jahanara Nissar of Odeon Capital mused that potential suitors could include the likes of Google parent Alphabet , Facebook , Microsoft,Amazon.com , AT&T and Verizon . Note that just yesterday Verizon agreed to acquire wireless spectrum specialist Straight Path Communications in a deal worth $3.1 billion.

Globalstar satellites

IMAGE SOURCE: GLOBALSTAR.

Now what

Today's news comes than a month after initial reports suggested Globalstar could be a buyout target. But investors should be aware there are no guarantees that Globalstar will find a willing suitor. If a deal can't be reached, that could be catastrophic for investors amid lingering questions of how long it can survive in its current unprofitable state. But if a bidding war erupts over its potentially valuable assets, GlobalStar shareholders could be handsomely rewarded in the process.

10 stocks we like better than Globalstar

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Globalstar wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of May 1, 2017

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Steve Symington has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, and Verizon Communications. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

GSAT

Other Topics

Stocks