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.
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.
