Lynk reveals its direct-to-cell financial projections

Lynk Global said it inked a final agreement with Slam Corp., a special purpose acquisition company (SPAC) fronted by former Yankees slugger Alex Rodriguez, in a deal that positions Lynk to go public on the Nasdaq. Lynk also disclosed its financial situation and aspirations through 2025 as part of the deal.

Lynk’s financial figures are important, considering there’s an ongoing debate about the overall value of the satellite-to-cell industry. They’re also interesting because Lynk’s rival AST SpaceMobile, in 2020, offered its financial projections as part of its IPO efforts. But AST SpaceMobile’s aspirations proved too ambitious; the company in 2020 hoped to sign up 9 million customers – each paying around $1 per month – to its service by the end of 2023. Now, at the beginning of 2024, AST SpaceMobile hasn’t yet begun offering commercial services.

Regardless, Lynk’s new investors remain optimistic. “Lynk seeks to connect the world by extending cell coverage everywhere. We are thrilled to announce this business combination agreement,” said Rodriguez, the CEO of Slam, in a release. Rodriguez, nicknamed “A-Rod,” played 22 seasons of Major League Baseball, including more than a decade as a third baseman and shortstop with the New York Yankees.

But Lynk’s new deal with Slam is just the start of the company’s financial efforts. As noted by SpaceNews, it’s still unclear how much money Lynk will get through Slam, as the SPAC’s investors can still bow out of the deal before it closes. Slam commanded around $575 million in 2021 but now has less than $99 million.

Moreover, Lynk is also pursuing other fundraising efforts in parallel with its Slam merger and initial public offering (IPO), including a Series B round of funding. “Lynk is pursuing a number of avenues,” Lynk VP of Government Affairs Tony DeTora told the publication.

The details

In its lengthy investor presentation, Lynk said its deal with Slam values the company at around $800 million. Lynk also disclosed its expenses: each satellite cost around $400,000 to build and up to $815,000 to launch into space. The company hopes to have up to 74 satellites in orbit by 2025, up from three today.

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