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Activist Carronade spots a hidden gem in Viasat's business. How the firm may unlock value

1. Carronade Capital calls for Viasat to spin-off its DAT business. 2. Communications segment faces pressure while DAT shows strong potential. 3. Viasat's share price decreased significantly over the past few years. 4. Carronade sees DAT value between $6.3 billion to $16.2 billion. 5. Management hints at potential divestiture of DAT, aligning with Carronade's views.

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FAQ

Why Bullish?

The push for a spin-off highlights underlying value in Viasat's DAT segment. Historical instances of similar spins often led to share price increases due to unlocked value.

How important is it?

The article emphasizes a strategic catalyst (spinoff) that can drastically enhance Viasat's market perception and share price.

Why Long Term?

The DAT spin-off would take time to materialize but could significantly boost valuations. As the infrastructure for Defense and Advanced Technologies matures, future growth is likely.

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