- French satellite operator Eutelsat counts the OneWeb low-earth orbit (LEO) constellation as part of its portfolio
- As sovereign considerations gain greater weight, Europe is looking to ensure it has a major satellite broadband player
- Eutelsat is raising €1.35bn to help fund OneWeb’s expansion in a deal that will see the French State increase its stake in Eutelsat to almost 30%
French satellite network operator Eutelsat is to raise €1.35bn from a new capital increase that will provide it with fresh funds for the expansion of its OneWeb low-earth orbit (LEO) constellation and give Europe a stronger rival to Starlink, Elon Musk’s LEO operation.
The funds are set to be in place by the end of the year and to come from a range of investors. But what’s clear from the agreement is that the French government clearly believes that securing Eutelsat’s future and ability to grow and compete with rivals from other regions is absolutely critical to Europe and it’s underpinning that view with a large chunk of the fresh funding that will result in the French State increasing its stake in Eutelsat to 29.99%, making it the single biggest shareholder. The funding agreement is complex and still slightly fluid, as some additional investors may join over the coming months, but the salient details can be found in this press release.
