AST SpaceMobile Estimates $1.4 Billion Investment in Rakuten Venture as Shares Fall

AST SpaceMobile (NASDAQ: ASTS) shares fell more than 3% to $35.60 in Tuesday’s premarket trading. After Monday’s close, the company released third-quarter earnings and filed a Form 10-Q detailing an estimated $1.4 billion investment over three years in its Japanese satellite joint venture with Rakuten. AST SpaceMobile expects to fund the portion of the Japanese satellite constellation’s deployment costs not covered by government support through subscriptions for preferred shares in Rakuten AST. The $1.4 billion figure is a preliminary estimate. According to the SEC filing , the final subscription amount will depend on several factors, including satellite materials and launch costs. The preferred shares would not carry fixed, periodic payouts to holders and would rank ahead of common shares if the joint venture is dissolved or terminated.

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