OneWeb and Eutelsat negotiating possible merger
In a press release today the geosynchronous (GEO) communications satellite company Eutelsat revealed that it is negotiating a possible merger with the low Earth orbit (LEO) communications satellite company OneWeb.
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 ~$16bn (2030) Satellite Connectivity market. 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, started with Eutelsat’s equity investment in OneWeb in April 2021 and deepened with the Global Distribution Agreement announced in March 2022. Eutelsat currently holds 23% of OneWeb’s share capital, alongside a consortium of high-profile public and private investors.
Under the terms of the transaction being discussed, Eutelsat and OneWeb shareholders would each hold 50% of the combined group’s shares. [emphasis mine]
This appears to be an attempt by Eutelsat to survive, since the future of geosynchronous communications satellites is presently very questionable with the arrival of the many LEO satellite constellations like OneWeb and Starlink.
Meanwhile, the highlighted words in the quote do not match reality. If anything OneWeb has stalled badly since February, when Russia invaded the Ukraine and cancelled the remaining half dozen or so scheduled OneWeb launches. OneWeb has announced new launch contracts with SpaceX and India, but because none have even been scheduled, it increasingly appears its constellation will not be operational by 2023.
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In a press release today the geosynchronous (GEO) communications satellite company Eutelsat revealed that it is negotiating a possible merger with the low Earth orbit (LEO) communications satellite company OneWeb.
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 ~$16bn (2030) Satellite Connectivity market. 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, started with Eutelsat’s equity investment in OneWeb in April 2021 and deepened with the Global Distribution Agreement announced in March 2022. Eutelsat currently holds 23% of OneWeb’s share capital, alongside a consortium of high-profile public and private investors.
Under the terms of the transaction being discussed, Eutelsat and OneWeb shareholders would each hold 50% of the combined group’s shares. [emphasis mine]
This appears to be an attempt by Eutelsat to survive, since the future of geosynchronous communications satellites is presently very questionable with the arrival of the many LEO satellite constellations like OneWeb and Starlink.
Meanwhile, the highlighted words in the quote do not match reality. If anything OneWeb has stalled badly since February, when Russia invaded the Ukraine and cancelled the remaining half dozen or so scheduled OneWeb launches. OneWeb has announced new launch contracts with SpaceX and India, but because none have even been scheduled, it increasingly appears its constellation will not be operational by 2023.
Readers!
My annual February birthday fund-raising drive for Behind the Black is now over. Thank you to everyone who donated or subscribed. While not a record-setter, the donations were more than sufficient and slightly above average.
As I have said many times before, I can’t express what it means to me to get such support, especially as no one is required to pay anything to read my work. Thank you all again!
For those readers who like my work here at Behind the Black and haven't contributed so far, please consider donating or subscribing. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Every one of those 2020 conclusions has turned out right.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
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