Chinese company agrees to buy Israeli satellite company

Wheels within wheels: A Chinese company, managed by a Luxembourg company that in turn delegates management of its satellites to an Israeli-based company, has made a deal to purchase Spacecom, a different Israeli company that operates and owns the Amos fleet of communications satellites.

Observers said the deal could meet up with opposition from regulators, including the Communications Ministry. But Pollack said the transaction would be done in accordance with Spacecom’s license terms, which require the satellites be operated from Israel and that the company remain Israeli. The sale would put Spacecom under the direct control of an Israeli-domiciled company called Big Bird, which is managed by Major General (Res.) Ami Shafran, a former head of the Israel Defense Forces communications branch. Big Bird is 100%-owned by a Luxembourg company, which in turn is owned by Beijing Xinwei.

To say this financial deal is complicated is to understate the situation. Though it appears most everyone here is probably focused on making money, if I was Israeli I would be somewhat concerned that ownership of these crucial communications satellites is now going to be outside the country.

I also note the presence of Luxembourg in this space deal, illustrating again that this small European country is very much a big player in the commercial space industry.

Facebook to provide internet access to Africa

The competition heats up: Using an Israeli communications satellite built by the European satellite company Eutelsat and slated to be launched by SpaceX in 2016, Facebook will provide internet service to the African continent.

Under a partnership announced Monday, Facebook and European satellite operator Eutelsat will buy all of the broadband capacity on the AMOS-6 satellite owned by Israeli company Spacecom. The mission has no confirmed launch date, with SpaceX still recovering from a Falcon 9 launch failure in June, but the partners expect the satellite to begin service in the second half of 2016, according to a press release.

What I like about this is the number of companies involved, all trying to make money, with Facebook the newcomer to the space industry. And the more the merrier, I say!