Mentioned:
A new satellite phone network is coming to Japan. And Rakuten and AST SpaceMobile are behind it.
What’s happening:
- AST SpaceMobile (NASDAQ: ASTS) and Rakuten have formed a new joint venture known as Rakuten AST to build a satellite network in Japan that connects directly to ordinary smartphones
Why it matters:
- This is the first time ever that Rakuten will co-own a satellite network
Going deeper:
- Rakuten will own 51% of the new joint venture and AST SpaceMobile will own 49%
- AST SpaceMobile has publicly stated they expect to invest $1.4B USD in preferred shares in the new joint venture company to fund the build out costs to develop the new satellite network over the next three years
The intrigue:
- AST SpaceMobile just recently made major waves on Wall Street when they partnered with Firefly Aerospace (NASDAQ: FLY) for a perpetual engine license and engine supply to build their own rocket known as Blacklift
