Viasat Soars 7% as Terrestar Becomes First “Sovereign Shell” for Its Equatys Satellite Venture

Roxanna Maglangit • 4 minute read
Reviewed by: Michael Douglass
Last updated Oct 29, 2026

Billion Photos via Canva

Key Takeaways

  • Viasat shares jumped 7% after Terrestar Solutions agreed to link its planned Canadian constellation with Equatys, Viasat’s satellite venture with Space42.
  • Terrestar is the first partner for Equatys’s sovereign-shell model, in which a country owns its network but connects to a global one.
  • Partners that pay for their own satellites suit Viasat, which carried $6.9 billion of debt at the end of March 2026.
  • The deal isn’t binding, and Equatys faces AST SpaceMobile and SpaceX in connecting phones straight to satellites.

Viasat (VSAT) is up 7% today after landing the first outside partner for Equatys, the direct-to-device venture it’s co-founding with UAE-based Space42.

Before the open, the companies said they’d signed a memorandum of understanding to link Canada’s Terrestar Solutions and its planned CaStar constellation with Equatys. That’s a different route from AST SpaceMobile (ASTS) and SpaceX (SPCX), each building a network it owns outright.

What Terrestar signed up for

The joint release calls the deal “the first example of Equatys’s ‘sovereign shell’ approach.” Terrestar keeps control of CaStar, its ground stations and its customers, while its satellites work with Equatys’s worldwide.

Viasat and Space42 bring more than 100 MHz of globally coordinated mobile-satellite spectrum and deals with over 400 mobile operators. Each country that adds its own shell puts those to work without Viasat paying for the satellites.

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Viasat needs the help

Viasat’s capex outran its cash from operations in four of the last five fiscal years:

Bar chart from TIKR of Viasat's cash from operations vs. capital expenditures, $ millions, fiscal 2022-2026 (years to March).
Viasat (VSAT): cash from operations vs. capital expenditures, $ millions, fiscal 2022-2026 (years to March) (TIKR)

Fiscal 2026 left about $600 million after capex. Viasat’s $400 million share of Equatys’s founding equity is two-thirds of that.

And its debt has more than doubled since fiscal 2022:

Bar chart from TIKR of Viasat's total debt, $ billions, fiscal 2022-2026 (years to March).
Viasat (VSAT): total debt, $ billions, fiscal 2022-2026 (years to March) (TIKR)

AST SpaceMobile is paying for its own BlueBird constellation, aiming for about 45 satellites in orbit by early 2027, up from 13 in August. Viasat, which urged the FCC on Monday to reject AST’s overseas spectrum bid, is better off splitting a bill like that.

SpaceX is the bigger rival. Starlink’s Connectivity segment grew revenue 69% to $5.2 billion in the third quarter, and SpaceX has agreed to buy FCC licenses for 800 MHz spectrum to build out Starlink Mobile. Equatys is betting that countries like Canada would rather own their network than rent Starlink’s.

One shell down

My take: Terrestar is small, with one satellite in service today, but it shows the sovereign-shell pitch can sign a country. For a company with this much debt, more partners paying for their own shells would be very welcome.

Of course, this is only a memorandum of understanding, and Equatys still needs regulatory approvals before it’s formed. A second country signing on is the thing to watch.

So what is Viasat stock actually worth?

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!

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