Eutelsat-OneWeb stock plummets
Despite its merger with Eutelsat in 2023, the stock value of the combined Eutelsat-OneWeb satellite company has plummeted in the past year, more than halving the value of the OneWeb portion that was saved from bankruptcy by both the government of the United Kingdom and investors from India in 2020.
The collapse means the UK’s investment is worth €133m (£110m), representing a near £300m paper loss for the taxpayer. … However, while the all-share deal implied a value of €12 per share, Eutelsat’s stock has since imploded. In the past 12 months, it has halved and is trading at record lows of €2.58.
Eutelsat was facing its own collapse before the merger, as its business was geosynchronous communications satellites which are now losing their business to the low-Earth orbit constellations such as SpaceX’s Starlab and OneWeb’s. The merger was the company’s attempt to join this new market.
OneWeb however has had its own repeated problems completing that its constellation, and faced bankruptcy in 2020 because of delays from the COVID panic as well as delays in launching the Ariane-6 rocket. Then Russia’s invasion of the Ukraine in 2022 meant it lost all its remaining planned launches, forcing it to scramble to find other launch providers.
Stock market analysts don’t expect the combined company to begin earning profits for at least the next three to five years, which casts an even greater pall on its future.
Despite its merger with Eutelsat in 2023, the stock value of the combined Eutelsat-OneWeb satellite company has plummeted in the past year, more than halving the value of the OneWeb portion that was saved from bankruptcy by both the government of the United Kingdom and investors from India in 2020.
The collapse means the UK’s investment is worth €133m (£110m), representing a near £300m paper loss for the taxpayer. … However, while the all-share deal implied a value of €12 per share, Eutelsat’s stock has since imploded. In the past 12 months, it has halved and is trading at record lows of €2.58.
Eutelsat was facing its own collapse before the merger, as its business was geosynchronous communications satellites which are now losing their business to the low-Earth orbit constellations such as SpaceX’s Starlab and OneWeb’s. The merger was the company’s attempt to join this new market.
OneWeb however has had its own repeated problems completing that its constellation, and faced bankruptcy in 2020 because of delays from the COVID panic as well as delays in launching the Ariane-6 rocket. Then Russia’s invasion of the Ukraine in 2022 meant it lost all its remaining planned launches, forcing it to scramble to find other launch providers.
Stock market analysts don’t expect the combined company to begin earning profits for at least the next three to five years, which casts an even greater pall on its future.