Boston internet startup Starry reaches deal to go public

Wireless internet provider Starry has completed its merger with a so-called blank check company and will begin trading on the New York Stock Exchange on Tuesday, despite recent turmoil in the tech sector.

Boston-based Starry completed its merger with FirstMark Horizon Acquisition, a special-purpose acquisition company, and raised $176 million to continue building its internet service. That was less than the $450 million projected when the deal was announced in October, but tech stocks have fallen this year and investors have avoided many SPAC deals.

The merger deal valued Starry at $1.76 billion, but once negotiations begin, the company could face the same backlash that has greeted other recent SPAC listings. Boston biotech Gelesis went public via a SPAC merger in January and has since seen its share price plummet 42%, for example.

“I am proud that our team is taking this next important step to grow the business,” Chief Executive Officer and Co-Founder Chet Kanojia said in a statement. “Building large-scale broadband networks is difficult. Serving your client well is even more difficult.

Unlike cable and phone company internet services that run on wires, Starry’s $50-a-month service uses wireless technology to connect homes and businesses to the internet. The company said it had 63,230 subscribers at the end of 2021 and offers service in six cities: Boston, New York, Los Angeles, Washington, DC, Denver and Columbus, Ohio. Revenue nearly doubled in the first nine months of last year to $15 million, while a net loss of $119 million was 36% higher than the same period in 2020.

Aaron Pressman can be contacted at Follow him on Twitter @ampressman.

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