We said back in October that Intelsat increasingly resembles a Zombie company – with uncompetitive legacy technology and a staggering $15 billion debt burden, it’s equity market capitalisation was already small by comparison, but got smaller last week as the share price crashed in response to a profit warning.
Intelsat apparently tried to offload assets but could not find a buyer. Now we hear rumours from the East that Zombie behaviour is evident in the way it trades. Desperate to compete with better technology especially in emerging markets, Intelsat is apparently “selling” capacity for free on multi year terms in a desperate bid to stop customers moving to rival technologies.
Thats sounds like a one-way zombie train to oblivion.