Jeff:
Not cryptic! We are in a consolidating industry. Loral is a medium sized fish with tasty meat and few bones. The small fish, the regional operators like APT, AsiaSat, Nahuelsat, Brasilsat,Hispasat, will be consumed just as SatMex and Orion were gobbled up. No need for everyone to own one or three sats with no backups, and have expensive TT&C resources following their tiny fleet. They can't compete. In true evolutionary fashion, the strong survive, the weak get digested. As Loral consumes more, they get fatter, tastier, more tender. If they have grand plans to become super-sized, they can't go it alone. Cash is required. That requires a sugar daddy partner or a new owner. If G* was to fuel their growth by providing heaps(a Winn trademarked term)of free cash flow, they have to change plans, or at least push them farther out. They can survive on their own if they just wait for cash to catch up with their appetite, but the competition already has cash, and they aren't waiting! |
