$ASTS · AST SpaceMobile, Inc.
AST SpaceMobile filed an 8-K (Item 7.01) announcing it will build its own 20-ton reusable rocket, named Blacklift, to deploy BlueBird satellites in low Earth orbit using Miranda and Vira engines from Firefly Aerospace. The deal includes ~$800M in upfront consideration ($400M cash plus 10-14M Class A shares via forward VWAP), plus $250M for engines for the first three launches and $250M over three years for engineering services. Blacklift is designed to carry up to five BlueBird satellites per launch starting in late 2028, completing the company's end-to-end vertical integration.
- ~$800M upfront consideration: $400M cash plus 10-14M Class A shares via forward VWAP.
- $250M for engines for first three Blacklift launches; $250M over three years for engineering services.
- Blacklift designed for reusability, up to five BlueBird satellites per launch starting late 2028.
- External launch agreements now cover over 100 BlueBird satellites cumulatively between 2027 and 2028.
- AST acquires perpetual license to manufacture Miranda and vacuum-variant Vira engines.
Stock closed +7.05% at $32.33; extended-hours last trade $32.39 (+0.19% vs close). The muted after-hours move suggests the vertical-integration announcement was largely anticipated or viewed as capital-intensive.
AST SpaceMobile is committing roughly $1.3B in total consideration to vertically integrate launch capability, a strategic bet that could reshape its cost structure and competitive position.
Vertical integration into launch mirrors SpaceX's model and deepens AST's competition with Starlink's direct-to-device offering, while Firefly (NASDAQ: FLY) gains a marquee engine customer.
The ~$800M upfront cost plus $500M in supply/services commitments is substantial for a pre-revenue company; rocket development carries execution and timeline risk with first launches not until late 2028.