Posted May 22, 2018 06:02:14A few days ago, a company called Mighty Networks announced that it was planning to invest $5.5 billion in a new network of satellite dishes and other equipment.
The new venture is called Mighty, a nod to the network of satellites that it plans to launch over the next few years.
In a statement, the company said it would also build new satellites and transmitters in a bid to expand its network.
The move was met with mixed reviews from the investment community.
A lot of investors seem to agree that Mighty Networks is a very risky bet, with the median price per share at $3.75 a share, according to S&P Capital IQ.
But, if the company is able to get to a point where its satellites can be used to transmit the video of a person eating, it would have a lot of momentum.
If it can do that, it could easily surpass Facebook’s $1.3 billion investment in a similar venture, the New York Times reported.
The company says it is already in talks with major satellite providers, but those talks are still in the early stages.
“The company is in talks for a deal with a number of the biggest satellite operators,” a person familiar with the matter told the Times.
“It’s just early days for them.
There’s not much they can do yet.”
The company also said it will invest $1 billion to fund a new television channel, and that it will launch a new mobile app for consumers.
“We will build a massive new mobile platform, Mighty Network, to bring more eyeballs and new ways for you to engage with Mighty Networks,” the company wrote on its website.
“This will be the network’s first major new product since the launch of the Mighty Networks app.”
The news was met by skepticism from investors, many of whom questioned how the company was able to keep the investment so low.
“What’s the point of investing in a satellite dish if you can’t make it work?,” wrote one analyst on the S&s stock exchange.
Another said the investment was too little, too late.
“You’d think a satellite company would have the capital to make a deal,” wrote another.
“But there’s no money left for satellite dishes.”
The deal is also a reminder of just how difficult it can be to invest in the technology behind big companies.
“In the short-term, it looks like they’ve got a very big gamble,” says Peter Diamandis, chief investment officer at Dividend Strategists.
“They’re going to be able to make it to profitability, but I don’t think they can make it sustainably.”
The problem is that it’s still early days, and the company has a lot to prove.
“That’s a huge gamble for them to make,” Diamanyis said.
“To get to profitability it will have to be a lot bigger than they thought.
It’s not going to make the company as profitable as they want to be.”
What’s the risk?
As the news broke, the price of a share of Mighty Networks jumped from $1 to $4.25.
The deal will not make up for any losses, and it’s unclear if it’s going to become profitable.
“If they can’t be profitable, then they’re dead and they’re out of money,” Dannan says.
“And if they’re not profitable, they’re just not going anywhere.”
That said, it’s a risky gamble, says Chris Rupp, chief market strategist at New York-based investment firm Rupp & Miller.
“When it comes to a venture like this, the only thing you can control is what you put in the venture and how much you put out in the funding,” Rupp says.
For example, if Mighty Networks invests only $1 million in a launch, it will likely fail.
“I think they’ll fail, and if they don’t succeed, they’ll be out of business,” Rudd says.
The risk is high, too, Rupp adds.
“People are going to lose money,” Raddington says.
Even if the venture does succeed, it may not last.
“There are going in some ways, like a billion-dollar investment, it might not last,” Raud says.
Some investors, like Rupp and Diamann, are already taking risks on new companies.
In February, Rannan, the head of digital media at SABMiller, invested $200 million in an internet startup called Kiva that was based on a startup called SaaS-powered crowdsourcing platform.
But he also invested in another company, OpenCoin, which is based on the Ethereum blockchain.
“Some of the other companies I’m interested in investing in have really big, very ambitious visions, and there’s some risk with that,” Rannans