Satellite Operator Planet to Go Public in 2.8B SPAC Merger
Satellite imaging company Planet is going public through a $2.8 billion SPAC merger. The company operates the largest fleet of Earth observation satellites and now theyre cashing in.
Planet takes daily photos of the entire Earths landmass. That data is valuable to everyone from farmers to governments to hedge funds looking for alternative investment signals.
CNBC reported on the merger details and what the company plans to do with the capital.
SPACs became the hot way to go public during 2020-2021. Companies that might struggle with traditional IPO scrutiny can merge with blank check companies instead.
Space technology investments have exploded as launch costs drop and satellite capabilities improve.
The $2.8 billion valuation reflects belief in the growing market for Earth observation data. Climate monitoring supply chain tracking disaster response all depend on this kind of imagery.
Planet has competition from companies like Maxar and BlackSky but scale matters in the satellite business. Their constellation approach gives them coverage advantages.
Whether the public market values Planet as highly as the SPAC merger implies will become clear once they start trading. SPAC valuations have been questioned broadly.
Merger announced July 2021
