Satellite operators Eutelsat and OneWeb eye possible merger

French satellite operator Eutelsat said Monday it is in talks with British counterpart OneWeb for a possible tie-up to become a global champion in broadband internet, rivalling US operators such as SpaceX's Starlink.

"Following recent market rumours, Eutelsat Communications confirms that it has engaged in discussions with its co-shareholders in OneWeb regarding a potential all-share combination to create a global leader in connectivity," the French company said in a statement.

Eutelsat, which specialises in geostationary Earth orbit (GEO) with a fleet of 35 satellites positioned at an altitude of 36,000 kilometres (22,400 miles) for satellite internet services, already holds a stake of 23 percent in OneWeb.

OneWeb, for its part, has deployed 428 out of a total 648 so-called "low Earth orbit" (LEO) satellites, operating at an altitude of several hundred kilometres.

The combined entity "would be the first multi-orbit satellite operator offering integrated GEO and LEO solutions and would be uniquely positioned to address a booming satellite connectivity market", that is expected to grow to $16 billion by 2030, Eutelsat said.

"OneWeb is one of the two only global LEO networks and has experienced strong momentum over recent months, with service expected to be fully deployed in 2023."

The transaction would represent a "logical next step in the successful partnership between Eutelsat and OneWeb," the statement said.

Under the terms of the transaction being discussed, Eutelsat and OneWeb shareholders would each hold 50 percent of the combined group's shares.

The transaction would be structured in such a way that OneWeb's shareholders would exchange their shares in OneWeb for newly issued Eutelsat shares.

Any combination would be subject to, among other conditions, approval by the requisite majority of Eutelsat shareholders and receipt of all relevant antitrust and regulatory approvals.

"There can be no assurance that these discussions will result in any agreement. Eutelsat will inform the market as soon as soon as there are any new developments," it said.

mra-jnb/spm/ach

EUTELSAT COMMUNICATIONS

Related Links
The latest information about the Commercial Satellite Industry

Tweet

Thanks for being there;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Monthly Supporter
$5+ Billed Monthly

paypal only

SpaceDaily Contributor
$5 Billed Once

credit card or paypal

Eutelsat KONNECT VHTS built by Thales shipped to Kourou
Paris, France (SPX) Jul 22, 2022
EUTELSAT KONNECT VHTS satellite, the state-of-the-art and largest satellite ever put into orbit by international operator Eutelsat Communications (Euronext Paris: ETL) is now on its way to Europe's Spaceport in Kourou, French Guiana, by boat, for a launch planned 6 September 2022 on board an Ariane 5 rocket. EUTELSAT KONNECT VHTS, a very high throughput satellite built by Thales Alenia Space, is to deliver high-speed broadband and mobile connectivity across Europe. With a Ka-band capacity of 500 G ... read more