OneWeb eyes merger with Eutelsat amid SpaceX Starlink expansion

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It's not the first time OneWeb has pivoted to changing conditions.

The proposal, which requires approval from Eutelsat shareholders and regulators, is not the first time OneWeb has pivoted its operations in recent years. bankruptcy protection in March 2020, shortly after the pandemic erupted and a key investor pulled out. It re-emerged under new ownership between the British government and the Indian telecom firm Bharti Global, ratcheting down how many satellites the startup planned to launch.

The Paris-headquartered Eutelsat bought nearly a quarter of OneWeb's shares in April 2021 in a larger move to boost internet connectivity as TV subscriptions decline,A Soyuz laden with OneWeb satellites was pulled off the pad at Baikonur Cosmodrome following the Russian invasion of Ukraine in February.

In essence, the agreement would see Eutelsat take over OneWeb while preserving priority voting rights with the British government. The transaction values OneWeb at $3.4 billion, with a value of Eutelsat share including dividends estimated at $12. The memorandum was approved unanimously by the boards of directors of the two companies, and several long-term investors on both sides support the move, according to the statement.

Eutelsat said it will hold a shareholder meeting in the first half of 2023 to vote on the matter. No timeline has been released on the regulatory approval, but the companies said they plan to complete the merger around mid-2023. Eutelsat CEO Eva Berneke would be CEO of the combined company, while chair D'Hinnin would be chair of the new board of directors. an unsolicited $3.2 billion takeover offer from Patrick Drahi, a billionaire best known for founding telecommunications group Altice.

 

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