Let's Put This In Perspective -- October 13, 2023

Locator: 45764INV.

"Everybody's" whining about the $60-billion price tag, XOM might pay for PXD.

Warren Buffett: BNSF (BNI) -- $45 billion, years ago.

AMD: Xilinx - $50 billion, a few years ago.

Microsoft: Activision: $69 billion. Today.

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Pop Quiz For The Day

I have absolutely no interest in satellites. I do not invest in satellite companies. I have no interest in Viastat.

So, why would I post this story?

Link here.

I will post a few paragraphs from the linked story in which "the answer" is hidden.

In July, it looked as if the satellite data and services provider would have to take a big write-off due to trouble with a satellite already in orbit. But it turns out that management on the ground has been able to minimize the problem, while insurance will limit the damage as well. 

In July, Viasat announced that an “unexpected event” happened during the deployment of the reflector of a new communications satellite, the ViaSat-3 F1, which is also sometimes referred to as ViaSat-3 Americas. The reflector is essentially the dish-like part of a satellite that collects and focuses data streams.  

Shares fell 28%, wiping out some $1.5 billion in market capitalization. It was a harsh reaction, but it is easy to see why the drop was large. The cost of that satellite was about $700 million.

Thursday, Viasat said that while the new satellite’s usefulness is compromised, the company will still be able to meet its commitments to customers. It isn’t a complete write-off; there is no need to replace the satellite. The overall business can manage through the loss.

The new satellite will function at about 10% of its planned capacity.