Falcone, Inmarsat Deal Could mean Billions For Satellite Co.

Aug 19 2010 | 3:03pm ET

By Teri Buhl, Contributor

Hedge fund honcho Phil Falcone and broadband company LightSquared yesterday executed their cooperative agreement with Inmarsat, which will allow both companies to share satellite space across North America. Inmarsat's stock (ISA.L) went up 5.5% off the news. But while reports state that Inmarsat is set to receive $340 million from the agreement over the next 18 months, sources involved in the deal say that figure is much higher.

LightSquared told FINalternatives that this deal should bring in a billion dollars of revenue over the life of the perpetual lease for Inmarsat.

Last week, FINalternatives reported that Falcone was close to the deal, having recently received regulatory approval. Falcone, through his hedge fund, owns 28% of Inmarsat’s stock. The Billionaire money manager has set his sights on bringing wireless internet and communications to rural areas of the United States. His deal with LightSquared and Inmarsat brings him one step closer to that goal.  


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note