Courtesy of Benzinga.
Gogo (NASDAQ: GOGO) shares were sharply higher Thursday afternoon on a rumor that it could be bought out by Verizon Communications (NYSE: VZ).
Gogo, with $1.43 billion in market capitalization, offers broadband service on more than 2,000 commercial aircraft and has estimated the market opportunity for commercial aircraft is $402 million.
On Wednesday, an industry news website called Runway Girl Network said "Wall Street is now buzzing" that the far-larger Verizon might acquire Gogo or form a joint venture or partnership.
AT&T in April announced the launch of a high-speed wireless in-flight service for airlines passengers that will compete with Gogo.
AT&T's move is "doubtlessly giving food for thought" to Verizon and other major telecommunications companies, Runway Girl said.
Gogo traded recently at $17.78 a share, up 5.9 percent.
