Why Shares of Gogo Are Higher Today

Gogo (NASDAQ: GOGO), one of the pioneers in in-flight internet service, has completed its deal to sell its commercial aviation unit to Intelsat (OTC: INTE.Q). Investors are pleased to see the deal done, sending shares of Gogo up as much as 13% in early trading Tuesday.

Gogo is selling its best-known business, but not its most promising one, according to management. In early September, the company said it would shed the commercial aviation business for $400 million in cash and focus its resources on providing data and services to business jets.

The business to be sold serves about 20 commercial airlines, including nine of the global top 20, and has antennae installed on more than 3,000 aircraft.

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Source Fool.com