Eutelsat confirms OneWeb merger talks | Media Investment | Business | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Acting after a spate of rumours, Eutelsat has revealed that it has engaged in discussions with its co-shareholders in fellow satellite operator OneWeb regarding a potential all-share merger to create a global leader in connectivity.
Eutelsat 28 oct 2021
Under the terms of the transaction being discussed, Eutelsat and OneWeb shareholders would each hold 50% of the combined group’s shares. In making its announcement, Eutelsat noted that OneWeb one of the two only global low earth orbit (LEO) networks and has experienced strong momentum over recent months, with service expected to be fully deployed in 2023. A 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 projected to be worth $16 billion by 2030.

The transaction would be structured as a contribution by OneWeb’s shareholders of their stake in OneWeb to Eutelsat in exchange 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 (including foreign investment) approvals.

Eutelsat added that any merger would represent a logical next step in the successful partnership between the two firms. It currently holds 23% of OneWeb’s share capital, alongside a consortium of high-profile public and private investors. Eutelsat has been an existing investor and shareholder since April 2021 and deepened with a global distribution agreement announced in March 2022.

However, Eutelsat stressed that there could be no assurance that the discussions will result in any agreement.