I SUSPECT THIS IS TOO LITTLE, TOO LATE: Gogo buys rival to tackle Starlink aviation expansion.

Gogo is acquiring inflight connectivity rival Satcom Direct to counter rising competition from SpaceX’s Starlink in the market for providing Wi-Fi to business jets.

Satcom Direct would get $375 million in cash and five million shares from Gogo under a deal announced Sept. 30, subject to regulatory approvals, and up to $225 million in extra payments tied to performance targets over the next four years, suggesting around $636 million in maximum total proceeds.

Gogo has historically dominated the small and midsize part of the business aviation market and connects about 7,000 planes, according to William Blair analyst Louie DiPalma, while Satcom Direct has a commanding market share for long-haul.

Combined, William Blair estimates the companies are providing Wi-Fi to around 8,200 of the 9,200 business jets that currently have connectivity — or nearly 90% of the market.

In-flight Starlink is faster and has lower latency — and is so cheap to install and operate that airlines like United will offer it for free. It seems likely Gogo will get replaced by carriers in the classic two ways, gradually then suddenly.