(Reuters) -Activist investor Carronade Capital Management urged Viasat ( VSAT ) to split its defense business as part of the satellite communications firm's ongoing strategic review.

Carronade - which holds a 2.6% stake in the satellite communications firm - in an open letter to shareholders on Thursday called for either a spin-off or an IPO of the defense and advanced technologies (DAT) business, which it said is alone worth $50 per share.

"We believe DAT's business lines span critical and rapidly growing areas. This is further enhanced by market share gains, driving growth that continues to exceed overall total addressable market growth," Carronade said in the letter.

The split could result in Viasat's ( VSAT ) shares trading at a range of $50 to $100 plus per-share pre-event, Carronade said.

Shares of Viasat ( VSAT ) were up 1.4% at $16.66 in afternoon trading on Friday.

Viasat ( VSAT ), in a statement on Friday, said its board and management will evaluate Carronade's ideas.

The company's communication services unit posted revenue of $3.3 billion for fiscal year 2025, while the defense segment brought in $1.22 billion.

Viasat ( VSAT ) expects mid-teen percentage revenue growth in the defense unit for fiscal 2026, driven by strong double-digit gains in information security, cyber defense, and space and mission systems.

The Financial Times, which first reported the development, said Carronade continues to build its stake in Viasat ( VSAT ) and also holds $30 million of the company's debt.