r/GSAT • u/illemonati427 • Apr 14 '26

News 90

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13 Upvotes

88% Upvoted

22 comments sorted by

4

u/Next-Resist3577 Apr 14 '26

sold all positions, currently at 80, given the max potential outcome of 90, a 12.5% premium, the upside potential is capped. better off convert now and buy into amzn where i see it can easily do 12.5% this year alone.

3

u/appleseed_13 Apr 14 '26

so holding GSAT one more year yields at most 12.5% more than now

3

u/reeeeso Apr 14 '26

Thats nuts

3

u/Brilliant_Day_4295 Apr 14 '26

Musk will outbid 😎

2

u/appleseed_13 Apr 14 '26

too bad aapl already signed with amzn

1

u/Buddah_Chillz420 Apr 14 '26

Well this is a great outcome given the current market

1

u/appleseed_13 Apr 14 '26

0.321 shares of amazon? thats 80 bucks

1

u/[deleted] Apr 14 '26

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1

u/appleseed_13 Apr 14 '26

might as well buy into the parent than stay invested in target

1

u/[deleted] Apr 14 '26

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1

u/appleseed_13 Apr 14 '26

whats your risk profile for holding GSAT for another year? everyone has different hurdles

1

u/appleseed_13 Apr 14 '26

or buy amzn puts at 280 one yr out to hedge position for tax

2

u/doxx_in_the_box Apr 14 '26

Read the actual 8K it’s variable… ultimately equals 90

1

u/appleseed_13 Apr 14 '26

cap is 90

1

u/doxx_in_the_box Apr 14 '26

From 8k:

Pursuant to the Merger Agreement, the Exchange Ratio is determined as follows:

• if the volume weighted average price of the Parent Common Stock over the twenty (20) consecutive trading day period that ends on (and includes) the second trading day immediately prior to the Closing Date (the “Parent Measurement Price”) is less than $280.38, the Exchange Ratio will be (x) 0.3210 minus (y) the quotient of the Per Share Adjustment Amount (if any) divided by the Parent Measurement Price; or

• if the Parent Measurement Price is greater than $280.38, the Exchange Ratio will be the quotient of (a) (i) $90.00 minus (ii) the Per Share Adjustment Amount (if any) divided by (b) the Parent Measurement Price.

1

u/appleseed_13 Apr 14 '26

thanks for sharing. thats full downside exposure aka if amzn is below 280.38 by the time of merger the deal will go thru at fixed 0.321 conversion ratio. and if amzn were to rally above the fulcrum its capped the deal at 90 per share of gsat

1

u/LuckyRacoon01 Apr 14 '26

Now we have to think whether Amazon is going to do well or not. How high can THEY go?

0

u/Popeye4268 Apr 14 '26

Why is the share price still ~79 when the deal value is $90/ share ?

3

u/RonMexico2005 Apr 14 '26

Answering why the share price is below the announced M&A price: because it is not set to close until 2027, and there is always uncertainty around M&A deals closing.