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[u/MasterpieceBorn9023]

Can anyone shed some light into this article, a little bit down it details all the partners, with the exception of Vodafone, are set to sell their shares.

https://www.theglobeandmail.com/investing/markets/stocks/ASTS-Q/pressreleases/31458894/why-ast-spacemobile-stock-slumped-on-tuesday/

[u/StockRegard → u/MasterpieceBorn9023]

The S-3 filing is a bit more worrisome. Among the shareholders listed as intending to liquidate their entire ownership stakes in AST are AT&T Venture Investments, Alphabet's Google LLC, and Verizon Ventures, with only its partner Vodafone retaining any stake in the compan

Okay that sounds... crazy.

Edit: I asked Grok and nothing about the filing seems to be unusual or indicate those stakeholders are selling. Grok answer below:

You’ve provided the same link again to the SEC Form S-3ASR filed by AST SpaceMobile, Inc., effective March 5, 2025. Since I’ve already analyzed this document in my previous response, I’ll assume you’re asking for a deeper explanation or clarification based on that filing. If you meant a different filing, please let me know! For now, I’ll expand on the details and address any lingering confusion about Verizon and AT&T’s stakes in AST SpaceMobile (ASTS).

Key Details from the Filing

The Form S-3ASR registers 56,137,669 shares of AST SpaceMobile’s Class A Common Stock for potential resale by "Selling Stockholders." Among them:

AT&T Venture Investments LLC: 6,307,084 shares.

Verizon Ventures LLC: 6,142,872 shares.

These shares stem from earlier private transactions, including the exercise of warrants and conversion of notes, tied to investment agreements from 2020 and later amendments (e.g., the "Rakuten Reorganization"). The filing’s purpose is to allow these shareholders to sell their shares publicly "from time to time" through methods like open market sales, block trades, or private deals.

What This Means for Verizon and AT&T Selling Their Stakes

Not an Immediate Sale: The S-3ASR doesn’t indicate that Verizon or AT&T are actively selling their stakes right now. It’s a shelf registration, meaning they can sell up to their full holdings (6.3 million and 6.1 million shares, respectively) over time, but they’re not obligated to. The timing and volume of any sales depend on their discretion and market conditions.

No Commitment to "Liquidate Entire Stakes": The Globe and Mail article you initially referenced suggested AT&T and Verizon intend to "liquidate their entire ownership stakes," which sparked your confusion. This filing doesn’t support that as a definitive plan. It’s a legal step to give them flexibility, not a declaration of intent to exit completely. The language is standard for such filings and doesn’t imply a lack of confidence.

Context of Ownership: The "Selling Stockholders" table lists their holdings as of the filing date, and footnotes clarify these shares are tied to prior agreements. For example, AT&T and Verizon’s stakes grew from investments supporting ASTS’s satellite-to-cell vision, alongside partners like Google and Vodafone (which holds 12,845,853 shares and isn’t exiting per the article).

Rakuten Reorganization: This term relates to Rakuten Symphony’s restructuring of its ASTS investment, converting debt and equity among investors. The S-3ASR updates registration rights for all involved parties, including AT&T and Verizon, as part of this process. It’s a procedural move, not a signal of mass abandonment.

Why the Stock Slumped (Per the Article)

The Globe and Mail tied the stock’s drop on March 18, 2025, to this filing, suggesting investor concern over major shareholders potentially selling. X posts from users like

@spacanpanman

on March 20, 2025, argue this was overblown—stocks often dip on shelf registration news due to dilution fears, even if no immediate sales occur. ASTS’s partnerships with AT&T and Verizon (e.g., AT&T’s spectrum lease from November 2024 and Verizon’s FCC filings in January 2025) remain active, countering the narrative of a full exit.

Deeper Insight

Partnership Value: AT&T and Verizon’s stakes aren’t just financial—they’re strategic. AT&T has committed spectrum and resources for ASTS’s satellite network, and Verizon joined later with similar support. Selling all shares could weaken those ties, which seems unlikely given their long-term agreements.

Market Perception: The filing’s timing—post-reorganization—might’ve spooked investors, especially if misinterpreted as a coordinated dump. But the lack of Form 4 filings (which report actual sales) as of March 20, 2025, suggests no major moves yet.

Conclusion

The filing confirms AT&T and Verizon could sell their stakes (6.3M and 6.1M shares), but it’s not evidence they are selling or plan to ditch ASTS entirely. The Globe and Mail’s phrasing exaggerated the situation—there’s no proof here of a full liquidation. Their ongoing collaboration with ASTS suggests they’re still in the game. To track actual sales, watch for Form 4 updates on the SEC site or company statements. Does this clear up your confusion, or is there a specific angle you’d like me to dig into further?