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On May 22nd the EU whacked Meta with a €1.2bn ($1.3bn) fine for transferring users’ data to America, in breach of European privacy rules (which turn five this week). The social-media giant is a repeat offender when it comes to privacy breaches. But the EU has reserved the biggest penalties for other sins. Between 2017 and 2019 Google was fined a total of over €8bn for abusing its dominance in search and advertising. Both Google and Meta can afford it; the fines represent a fraction of their profits.■To stay on top of the biggest stories in business and technology, sign up to the Bottom Line, our weekly subscriber-only newsletter. More

Virgin Galactic is preparing to launch its first spaceflight in nearly two years on Thursday.
Called Unity 25, the mission represents the company’s fifth spaceflight to date and is the first since launching founder Sir Richard Branson to the edge of space.
It’s a crucial moment in the history of Virgin Galactic, which has suffered repeated setbacks, several disasters and years of delays in developing its spaceflight system.

Aircraft VMS EVE carries with spacecraft VSS Unity during a flight test.
Virgin Galactic

Virgin Galactic is preparing to launch its first spaceflight in nearly two years on Thursday, as the space tourism company aims to pass a final test before flying commercial passengers.
Called Unity 25, the mission represents the company’s fifth spaceflight to date and is launching out of Spaceport America in New Mexico. It marks a “final assessment” flight, with six Virgin Galactic employees onboard for a short trip to the edge of space.

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Virgin Galactic will not publicly livestream the flight, unlike its previous spaceflight that carried founder Sir Richard Branson in July 2021. Instead the company plans to give updates on Unity 25’s progress on social media.
Carrier aircraft VMS Eve is expected to take off at about 10 a.m. ET, carrying the company’s VSS Unity spacecraft up to an altitude of about 40,000 feet before releasing the rocket-powered vehicle. VSS Unity will then fire its engine, aiming to climb past 80 kilometers (or about 262,000 feet) – the altitude the U.S. recognizes as the boundary of space.
Known as sub-orbital, this type of spaceflight gives passengers a couple minutes of weightless, unlike the much longer, more difficult and more expensive private orbital flights conducted by Elon Musk’s SpaceX. Depending on the outcome and data gathered from Unity 25, the company aims to fly its first commercial mission in “late June.”

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VSS Unity will be piloted by Virgin Galactic’s Mike Masucci and CJ Sturckow, while carrier aircraft VMS Eve will be flown by Jameel Janjua and Nicola Pecile. In the passenger cabin will be Chief Astronaut Instructor Beth Moses, as well as astronaut instructor Luke Mays, senior engineering manager Christopher Huie, and senior manager of internal communications Jamila Gilbert.

A crucial moment

An aerial view of carrier aircraft VMS Eve, left, and spacecraft VSS Unity, at Spaceport America in New Mexico on Feb. 27, 2023.
Virgin Galactic

Unity 25 represents a crucial moment in the history of Virgin Galactic, which has suffered repeated setbacks and years of delays in developing its spaceflight system.

Branson’s spaceflight nearly two years ago came after almost 17 years of work, and over a billion dollars invested in the company. Before that, the spacecraft’s development saw several disasters, including a rocket engine explosion on the ground in 2007 that killed three Scaled Composite employees, as well as the crash of the first SpaceShipTwo vehicle, VSS Enterprise, in 2014 that killed Virgin Galactic co-pilot Michael Alsbury and injured pilot Peter Siebold.
After Branson’s spaceflight, Virgin Galactic paused operations for a longer-than-expected refurbishment period while the company worked on its spacecraft and carrier aircraft, following an FAA investigation into a mishap during his trip. The refurbishment process was intended to take about eight to 10 months, but ended up lasting nearly 16 months.
Virgin Galactic has yet to generate meaningful revenue, and needs to be flying spaceflights regularly in order to do so. While the company has nearly $900 million in cash and securities on hand, its quarterly cash burn continues to climb as it invests heavily in expanding its fleet of spacecraft.
Virgin Galactic needs to bring to market its future Delta class to fly weekly flights, but those spacecraft aren’t expected begin flying until 2026.
VSS Unity is designed to hold up to six passengers along with the two pilots. The company has 600 reservations for tickets on future flights, sold at prices between $200,000 and $250,000 each. It reopened ticket sales in 2021, with pricing beginning at $450,000 per seat. More

American Eagle Outfitters shares dropped after the retailer lowered its outlook.
The company reported quarterly earnings and revenue in line with expectations.
American Eagle posted disappointing results after rival Abercrombie & Fitch saw shares spike after it reported a surprise profit.

A view of an American Eagle Outfitters store in Arlington, Virginia.
Erin Scott | Reuters

Shares of American Eagle Outfitters dropped Wednesday in after-hours trading, as the company lowered its full-year outlook.
The company cut its forecast, even as it matched Wall Street’s quarterly earnings expectations and beat revenue expectations.

The mall retailer said it now expects operating income to range between $250 million and $270 million, below the $270 million to $310 million range it had predicted in March. It said it anticipates full-year revenue to be flat to down low single-digits, lagging the flat to up single-digits it projected before.
Sales trends slowed as the company began the second quarter, a pattern the retailer factored into its guidance. On an earnings call, Jen Foyle, the company’s executive creative director, said she hopes shoppers will buy more seasonal merchandise as Memorial Day hits and summer weather takes hold.
Shares plunged about 14% following the company’s earnings report after the market close.
Here’s how the company did for the three-month period that ended April 29 compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

Earnings per share: 17 cents, adjusted, versus 17 cents expected
Revenue: $1.08 billion, versus $1.07 billion expected

American Eagle, which includes its namesake brand and the Aerie brand, diverged significantly from its competitor, Abercrombie & Fitch. Earlier Wednesday, shares of Abercrombie shot up as it posted a surprise profit and raised its outlook, lifting American Eagle’s stock with it.

American Eagle lost those earlier gains, as it reported its own quarterly results after the bell, including falling profits. Net income fell about 42% to $18.45 million, or 9 cents per share, compared with $31.74 million, or 16 cents a share, in the year-ago period.
Total net revenue rose about 2% to $1.08 billion from the $1.06 billion it reported in the year-ago period. Store revenue rose 5%. Digital revenue dropped 4%.
Its brands had mixed results. Aerie’s comparable sales increased 2%, but comparable sales for American Eagle’s namesake brand declined 2% compared with the year-ago period.
American Eagle made strides with inventory levels. Many retailers, including Target, Kohl’s and others, got stuck with too much merchandise after shipments got stuck in the supply chain and consumer preferences swung away from categories popular during the Covid-19 pandemic.
Inventory declined 8% to $625 million at the end of the quarter compared to the year-ago period.
In a news release, CEO Jay Schottenstein said the company wants to build back its operating margins and chase profitable growth. He said it is focused on “inventory discipline, cost savings and efficiencies across the business,” particularly with the tougher economic backdrop. More

Tina Turner has died at the age of 83 after a long illness.
In recent years, Turner had suffered ill health. She was diagnosed with intestinal cancer in 2016 and had a kidney transplant in 2017.
The singer had a career that spanned decades.

Tina Turner performs at Shoreline Amphitheatre in Mountain View, California, May 23, 1997.
Tim Mosenfelder | Archive Photos | Getty Images

Singer Tina Turner has died at the age of 83 after a long illness, according to a statement posted on her official Facebook page Wednesday.
“It is with great sadness that we announce the passing of Tina Turner. With her music and her boundless passion for life, she enchanted millions of fans around the world and inspired the stars of tomorrow,” the statement said.”Today we say goodbye to a dear friend who leaves us all her greatest work: her music. All our heartfelt compassion goes out to her family. Tina, we will miss you dearly,” it continued.

Widely referred to as the Queen of Rock ‘N’ Roll, Turner had a career that spanned over 60 years and included iconic songs “Proud Mary” and “What’s Love Got to Do With It.” Known for her energetic performances, signature sequins and tousled hair, Turner has won 12 Grammy awards and sold more than 100 million records worldwide.
In recent years, Turner had suffered ill health. She was diagnosed with intestinal cancer in 2016 and had a kidney transplant in 2017.
In a separate statement to Sky News, a spokesperson said Turner died “peacefully” at her home in Küsnacht, near Zurich, Switzerland.
“With her, the world loses a music legend and a role model,” the spokesperson said.
Turner was born in Brownsville, Tennessee, as Anna Mae Bullock. She lived in Switzerland mostly out of the public spotlight for the past decade.

Tuner began her career as a teenager in the late 1950s singing backup for musician Ike Turner’s blues band Kings of Rhythm. She soon became the group’s main attraction. By 1962, she married Ike and began performing with him as a duo.However, both the marriage and ensemble came to an end in the following years, as Tina alleged Ike was abusive. She later released acclaimed solo albums such as 1984’s “Private Dancer.”
In 2021, Tuner sold her music rights to German music company BMG. The deal included her past recordings across 10 studio albums, as well as rights to her name, image and likeness. She remained signed to record label Warner Music. 
In the same year, Turner was inducted into the Rock & Roll Hall of Fame for the second time. In 1991, she was enshrined along with ex-husband Ike Turner, who died in 2007.
At the 2021 induction ceremony, actress Angela Bassett, who portrayed Turner in a 1993 biographical film, praised the singer in a speech, and renditions of her songs were performed by artists including Keith Urban, H.E.R. and Christina Aguilera.
Following the announcement of Turner’s death, tributes poured in for the late singer.
“I’m so saddened by the passing of my wonderful friend Tina Turner,” tweeted Rolling Stones frontman Mick Jagger. “She was truly an enormously talented performer and singer. She was inspiring, warm, funny and generous. She helped me so much when I was young and I will never forget her.” More

Florida Gov. Ron DeSantis is slated to launch his presidential campaign on Twitter during a conversation with Elon Musk.
DeSantis will become Donald Trump’s top Republican primary rival in the race to defeat President Joe Biden.
DeSantis champions pro-business conservativism while also engaging in culture-war populism in fights against Disney and ESG investing.

Florida Gov. Ron DeSantis gives remarks at the Heritage Foundation’s 50th Anniversary Leadership Summit at the Gaylord National Resort & Convention Center on April 21, 2023 in National Harbor, Maryland.
Anna Moneymaker | Getty Images

Florida Gov. Ron DeSantis officially launched his presidential campaign Wednesday, putting his blend of pro-business conservativism and culture-war populism to the test at the national level.
DeSantis, 44, filed campaign paperwork and is set to announce his bid for the Republican presidential nomination on Twitter, during a live conversation with Elon Musk that is set for 6 p.m. ET. The announcement will cement DeSantis as the top Republican rival to former President Donald Trump, who has held a consistent polling lead over the primary field.

DeSantis worked to establish himself as a champion of economic growth even before he pushed to quickly lift Covid lockdown policies in the name of revitalizing Florida’s ailing businesses. He has since taken credit for the state’s low unemployment rate, its population growth and its economy outpacing the national average.
At the same time, he has plunged into political battle with some of his state’s top employers — most notably Disney — and signed legislation targeting private business practices, some of which has since been blocked in the courts.

DeSantis apparently sees no contradiction between his pro-business posture and his heavy-handed governance. “Corporatism is not the same as free enterprise,” he said in a speech last September, “and I think too many Republicans have viewed limited government to basically mean whatever is best for corporate America is how we want to do the economy.”
But some experts expressed skepticism about the governor’s tightrope walk.
“The Disney case sort of exemplifies this tension in DeSantis as a candidate,” said David Primo, a professor of political science and business administration at the University of Rochester. “There’s this hydra-like element to what he’s trying to do.”

A spokesman for DeSantis’ campaign-in-waiting did not immediately respond to CNBC’s request for comment.

DeSantis’ rise

DeSantis himself has little business experience. A Yale- and Harvard-educated lawyer, he joined the U.S. Navy Judge Advocate General’s Corps and served at Guantanamo Bay and in Iraq. He worked as an attorney after his active-duty service ended in 2010, and in 2012 was elected to Congress. Once there, he quickly established himself as a member of the far-right Tea Party movement.
DeSantis was the lead sponsor of 52 bills in Congress, none of which became law, Spectrum News reported. One of them was the “Drain the Swamp Act,” aimed to realize Trump’s campaign slogan by strengthening lobbying bans on officials after they leave government service.
A founding member of the conservative House Freedom Caucus, DeSantis also introduced legislation that would axe the payroll tax for retirement-age Americans, and he backed another bill to replace most federal taxes with a national sales tax. Critics say such proposals, which popped up again in Congress this year, would burden low- and middle-income Americans.
DeSantis resigned from Congress to run for governor in 2018 and, buoyed by an endorsement from Trump, narrowly defeated his Democratic opponent, Andrew Gillum. DeSantis’ aspirations for higher office were apparent among his loyalists that same year, Politico reported.
“He seemed to be like a mainstream Republican — pro-business, very conservative on social and economic issues,” said J. Edwin Benton, a professor of political science at the University of South Florida.
“And all of a sudden he had the ambition to become president. And to do so he knew he had to carve out a niche for himself.”

Covid breakthrough

DeSantis seized the national spotlight during the coronavirus pandemic in September 2020, when he lifted all of Florida’s social distancing restrictions on restaurants, bars and other businesses.

Florida Gov. Ron DeSantis gives an update on the state’s response to the coronavirus pandemic during a press conference at Florida’s Turnpike Turkey Lake Service Plaza, in Orlando, Friday, July 10, 2020.
Joe Burbank | Orlando Sentinel | Getty Images

He also acquired more power for himself. By the following May, DeSantis had lifted all local Covid restrictions. Six months later, the governor banned private employers from imposing vaccine mandates.
Along the way, DeSantis held that his actions were aimed at protecting Florida businesses’ freedoms.
“Nobody should lose their job due to heavy-handed COVID mandates and we had a responsibility to protect the livelihoods of the people of Florida,” he said in a November 2021 press release.
DeSantis’ stance clashed with public health experts’ views at the time and drew heavy criticism, especially after Florida weathered record-breaking waves of Covid cases and deaths in 2021. But while the state suffered the third-highest number of Covid deaths in the country, its death rate per 100,000 people was lower than in states with much stricter lockdown rules, such as New York and New Jersey, per New York Times data.
DeSantis has claimed victory, making his Covid response a key piece of what he now calls the “Florida Blueprint” for economic success.

Business culture

Even in the midst of the pandemic, DeSantis and his allies had trained their sights on other polarizing social issues that roped in Florida businesses.
In 2020, he quietly signed controversial legislation that required some private companies to use the E-Verify system to check employees’ immigration status. He strengthened those rules earlier this month, signing a bill that makes E-Verify mandatory for any employer with 25 or more employees.
In 2021, DeSantis signed a law that allowed Florida to punish large social media companies, such as Facebook and Twitter, that banned political candidates. The legislation came months after those and other companies kicked Trump off their platforms in the wake of the Jan. 6, 2021, Capitol riot. A federal appeals court has since ruled that the social media law is unconstitutional.
In the most recent legislative session, DeSantis signed a bill that stopped union dues from being automatically deducted from public employees’ paychecks. The Florida Education Association accused DeSantis of punishing them for opposing his policies, and critics have been quick to point out that the bill does not apply to unions representing first responders. Police and firefighters’ unions had endorsed DeSantis’ reelection bid.

Florida Gov. Ron DeSantis, a critic of environmentally sensitive investing, didn’t succeed in protecting his constituents from the ravages of Hurricane Ian, which may have been intensified by global warming.
Joe Burbank | Orlando Sentinel | Getty Images

DeSantis has also waged war against socially conscious ESG investing strategies, decrying the trend in his latest book as “an attempt to impose ruling class ideology on society through publicly traded companies and asset management.”
ESG, a broad concept that generally refers to investing strategies that prioritize environmental, social and governance factors, has become a prime target for conservatives seeking to root out progressive influence in corporate culture.
DeSantis signed a bill in early May barring state and local officials from making ESG-based investment decisions. It was only his latest action against ESG.
The ESG moves played into the governor’s argument against corporate influence and favoritism — themes he would employ again in his ongoing fight against Disney.

The Disney saga

Apparel promoting Florida Governor Ron DeSantis sit on a table before a book tour event at the North Charleston Coliseum on April 19, 2023 in North Charleston, South Carolina. 
Sean Rayford | Getty Images

The battle centers on legislation banning classroom discussion of sexual orientation or gender identity in grades K-3. Critics, who also noted the bill’s vague language could apply to older students, have nicknamed it “Don’t Say Gay.”
Among those critics was Bob Iger, Disney’s current CEO, who was not leading the company when he tweeted in February 2022 that the bill “will put vulnerable, young LGBTQ people in jeopardy.” Disney’s then-CEO Bob Chapek came out against the bill less than two weeks later and announced donations to pro-LGBTQ rights organizations. After the bill was signed, Disney vowed to help repeal the law.
DeSantis and his allies soon after targeted Disney’s special tax district, an arrangement that since the 1960s has allowed the company to effectively self-govern its Orlando-area parks. In April 2022, DeSantis signed a bill to dissolve the governing body, formerly known as the Reedy Creek Improvement District.
The move set off fears that the neighboring counties would be on the hook for the district’s expenses and debts. In February, the Florida legislature convened a special session and produced a bill that kept the district intact, but changed its name — and let DeSantis handpick its five-member board of supervisors.
The next month, the governor’s board members accused Disney of sneaking through 11th-hour development deals to thwart their power over the district. Disney says it followed the correct process in crafting those deals, and that it sought them in order to protect its investments in Florida amid the politically uncertain landscape.
The board voted to nullify those development contracts. Iger, who returned as Disney’s CEO in November, noted in a recent earnings call that other Florida companies also operate within special districts.
Disney sued Florida, accusing DeSantis of orchestrating a “targeted campaign of government retaliation” that now threatens the company’s business. The law was “designed to target Disney and Disney alone,” the company said in its federal civil suit. The board has countersued in state court.
The fight shows no signs of stopping, and returns to the spotlight with each new business update from Disney, such as the company’s recent announcement scrapping plans to build an employee campus in Florida.
The ESG and Disney fights “reflect ways for DeSantis to appeal to that populist base while at the same time keeping the general thrust of Florida policy very business friendly,” Primo, the political science professor, told CNBC.
He’s “banking on being able to do both,” Primo said. More

Kohl’s reported an unexpected first-quarter profit Wednesday.
The company’s shares surged in premarket trading.
Kohl’s reaffirmed its full-year outlook.

People walk near a Kohl’s department store entranceway on June 07, 2022 in Doral, Florida.
Joe Raedle | Getty Images

Kohl’s shares spiked early Wednesday as the struggling retailer posted a surprise profit while it chases a turnaround.
The company’s shares jumped more than 12% in premarket trading.

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17 hours ago

Kohl’s reiterated its full-year outlook. It said it expects net sales to range between a decline of 2% and 4%, including the approximately 1% impact from having one more week of sales this year. It said it expects earnings per share to range from $2.10 to $2.70, excluding nonrecurring charges.
Here’s how the retailer did for the quarter that ended April 29 compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

Earnings per share: 13 cents vs. a loss of 42 cents expected
Revenue: $3.36 billion vs. $3.34 billion

In the fiscal first quarter, Kohl’s net sales fell to $3.36 billion from $3.47 billion in the year-ago period.
Comparable sales declined 4.3% in the quarter, roughly in line with the 4.5% drop expected by Wall Street, according to StreetAccount.
The company reported net income of $14 million, or 13 cents per share, compared with $14 million, or 11 cents per share, a year earlier.

Kohl’s surprise quarterly profit comes after multiple quarters of disappointing sales and a sinking stock price. Last year, the retailer became a target for activist investors Ancora Holdings and Macellum Capital, which pushed the company to oust its then-CEO Michelle Gass and shake up its board. Kohl’s also discussed and then ended a bid last year to sell its business to Vitamin Shoppe owner Franchise Group.
Since then, Kohl’s has tapped a new CEO: Tom Kingsbury, former chief executive of off-price retailer Burlington Stores. Gass, its former CEO, left to become the next leader of Levi Strauss.
In more recent months, Kohl’s efforts to reinvent itself and woo shoppers have run into other obstacles. Many middle-income consumers feel squeezed by inflation and are buying fewer discretionary items, such as clothing. That contributed to a big loss in Kohl’s holiday quarter and weak outlook, which the Wisconsin-based company reiterated Wednesday.
Despite that, Kingsbury said Kohl’s made progress in the fiscal first quarter. He said the company has reduced excess inventory, attracted customers with Sephora shops and made stores more productive.
“Our first quarter results were in line with our expectations and represented a first step as we work to drive sales and earnings performance over the long-term,” he said in a news release.
Inventory declined significantly compared with the year-ago period. Kohl’s inventory was $3.5 billion at the end of the quarter, a drop of 6% year over year. Investors have closely watched those levels, since the glut of merchandise at many retailers has led to higher markdowns and lower profits.
Shares of Kohl’s closed Tuesday at $19.27. That’s less than half of its 52-high, which was $47.63. The company’s stock has tumbled nearly 23% so far this year — even as the S&P 500 has risen about 8% and the retail-focused XRT has fallen nearly 2%. More

Abercrombie & Fitch reported a surprise profit, raised its guidance and beat Wall Street’s estimates on the top and bottom lines.
Shares of the longtime mall retailer surged.
The company now expects net sales to grow between 2% and 4%, compared to a previous range of 1% to 3%.

Pedestrians pass in front of an Abercrombie & Fitch Co. store in San Francisco.
David Paul Morris | Bloomberg | Getty Images

Shares of Abercrombie & Fitch soared 18% in premarket trading Wednesday after the mall retailer beat estimates, raised its guidance and reported a surprise profit. 
Here’s how Abercrombie did in its fiscal first quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

Earnings per share: 39 cents, adjusted, vs. a loss of 5 cents expected
Revenue: $836 million vs. $815 million expected

The company’s reported net income for the three-month period that ended April 29 was $16.57 million, or 32 cents a share, compared with a loss of $16.46 million, or 32 cents a share, a year earlier. Excluding one-time items, Abercrombie reported per-share profit of 39 cents in the quarter.
Sales rose to $836 million from $812.8 million a year earlier.
Same-store sales were up 3% in the quarter, versus Street Account estimates of a 1% decline.
The apparel retailer raised its guidance following the earnings beat. For fiscal 2023, it now expects net sales to grow between 2% and 4%, compared to a previous range of 1% to 3%. It now expects its operating margin to be in the range of 5% to 6%, compared to its previous outlook of 4% to 5%.
For the fiscal second quarter, the company expects net sales to grow 4% to 6% and an operating margin in the range of 2% to 3%. More

Alternative satellite internet company Astranis has its first spacecraft in orbit and says it’s working “perfectly.”
“We have a new way of connecting people in some of the most remote and underserved parts of the world,” Astranis CEO John Gedmark told CNBC.
The company’s small satellite, built largely in-house and named “Arcturus,” launched on SpaceX’s Falcon Heavy rocket earlier this month, and is expected to begin providing service to customers in Alaska by mid-June.

The Arcturus satellite is seen in route to geosynchronous orbit.

Astranis, a San Francisco-based company with an alternative approach to providing internet access from satellites, has its first spacecraft in orbit and the company on Wednesday said it’s working “perfectly.”
“We have a new way of connecting people in some of the most remote and underserved parts of the world,” Astranis CEO John Gedmark told CNBC.

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20 hours ago

The company’s small satellite, built largely in-house and named “Arcturus,” launched on SpaceX’s Falcon Heavy rocket earlier this month, and recently arrived in its orbit. Astranis has already completed tests with the satellite, including connecting to user equipment in its service target of Alaska for the first time.
“This test validates everything that we’ve been working on and working towards and it’s a huge, huge deal,” Gedmark said.

The Arcturus satellite is seen deploying its solar arrays in the background from onboard the upper stage of SpaceX’s Falcon Heavy rocket.

Astranis’ is one of a number of next generation broadband satellite systems in development, as companies race to meet a growing global demand for data – including SpaceX’s Starlink, British-owned OneWeb, Amazon’s Project Kuiper, AST SpaceMobile and others.
But the company’s approach is the “third way” to providing broadband service from space, Gedmark explained. The company’s dishwasher-sized satellite combines the small form factor of satellites like SpaceX’s Starlink in low Earth orbit with the distant, geosynchronous orbit of traditional players like Viasat.
Geosynchronous orbit, or GEO, is about 22,000 miles away from the planet’s surface — a position which allows the spacecraft to stay above a fixed location, matching the Earth’s rotation.

Arcturus is a fraction of the size and cost of traditional GEO satellites.
“We can build these satellites very quickly compared to what has come before,” Gedmark said.

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Astranis highlighted 13 completed major milestones for Arcturus in its press release. Gedmark stressed that the company is “incredibly proud” of the satellite’s performance thus far, fending off both the “super harsh radiation environment” and “extreme temperature range” that GEO spacecraft experience.
Gedmark said Arcturus is operating about 10% to 15% above specification, which translates to about 8.5 Gigabits per second of total capacity. For users, Astranis expects its satellites will deliver download speeds of about 25 Megabits per second.

Alaskan service soon

A “gateway” ground station in Eagle Mountain, Utah.

Arcturus is positioned above Alaska, where Astranis’ first customer — telecommunications provider Pacific Dataport — will use it to triple the data speeds available to users across the state. Gedmark noted that about 40% of Alaskans don’t have access to reliable broadband internet, which “is a shocking number” that demonstrates how “starved of satellite capacity” the state has been.
“We cover about the entire state, including many of the most remote islands on the Aleutian chain,” Gedmark said, adding that Arcturus “will allow hundreds of thousands of people to get true broadband internet.”
Much of Astranis’ target users are enterprises – such as industrial companies, schools and hospitals – rather than individual or residential customers.
The company expects Arcturus to begin service in mid-June after completing further verification steps.

Astranis employees cheering while watching the launch at the company’s headquarters in San Francisco, California.

Demand pipeline

Astranis has raised over $350 million since its founding in 2015, at a valuation over $1 billion, with investors including BlackRock, Fidelity, Andreessen Horowitz, Baillie Gifford and Venrock. The company has over 300 employees.
As for raising more funding, Gedmark said the company remains in “a strong cash position” and is currently focused on making sure it gets service operational as soon as possible, for “people who really needed that internet yesterday.”
Astranis has a demand pipeline worth over $1 billion, representing orders for 10 satellites, over the next two years. 
It expects to launch four more satellites later this year on a SpaceX Falcon 9 rocket. One of those four is under a deal with Latin American service provider Grupo Andesat, to provide satellites that would bring improved broadband access to as many as 3 million people in Peru. Two others are for mobility-focused Anuvu, which provides services such as in-flight WiFi for Southwest Airlines, and the final satellite is for an unnamed commercial customer.
Gedmark has previously estimated the market for broadband demand is a $1 trillion global opportunity, and noted that Astranis’ existing pipeline features contracts that have options for additional satellites.
“We’re ready to go out and deploy many of these satellites all over the world and help get people connected,” Gedmark said. More