Eutelsat to invest US$550m in OneWeb bringing constellation funding to 80 per cent

by | Apr 28, 2021 | Constellation, Finance, Seradata News

European satellite operator Eutelsat has announced its intention to invest US$550 million in OneWeb, the low Earth orbit (LEO) constellation developer. Eutelsat, which primarily operates a fleet of 27 GEO satellites, has been developing a LEO Internet of Things constellation. The terms of the investment, announced on 27 April and set to complete this year, will see Eutelsat invest US$550 million for an equity stake of about 24 per cent in the company. This stake will elevate Eutelsat to the same level of ownership as the UK Government and Indian conglomerate Bharti Global. Their interests, acquired in a rescue of OneWeb last year, will fall from 30 per cent each once the capital is enlarged. Eutelsat will also gain seats on the board of directors.

 

Eutelsat reports that this investment is to be 100 per cent in cash and will be sourced from its current (end-of-March 2021) cash-positive position, coupled with expected proceeds from the US C-band auction. Eutelsat expects to receive over US$500 million from this over the coming years.

Following the announcement from Eutelsat, OneWeb stated that the new funding would cover 80 per cent of the projected cost of its first-generation constellation. Since emerging from bankruptcy protection in November 2020, it has managed to raise US$1.9 billion in financing (including this most recent investment).

Comment by David Todd: Eutelsat (backed by the French government) originally lost out to the UK government and Bharti in the bankruptcy bidding auction last year. In effect, this move gets Eutelsat back in the LEO game for a relatively cheap price.  It is also good news for OneWeb as Eutelsat can provide a distribution/sales resource for the firm. The decision is also a sort of validation of the gamble that the UK government took (under the advice of Prime Minister Boris Johnson’s then adviser, Dominic Cummings) to invest in OneWeb.

About Seradata

Seradata produce the renowned SpaceTrak Launch & Satellite Database. Trusted by 100 of the world’s leading Space organisations, SpaceTrak is a fully queryable database used for market analysis, failure/risk assessment, spectrum analysis and space situational awareness (SSA).

For more information go to www.seradata.com/spacetrak

Related Articles

Another 36 OneWeb satellites are sent into orbit via a Soyuz 2-1b/Fregat

A Soyuz 2-1b/Fregat rocket was launched into orbit from the launched from the Vostochny Cosmodrome in the far east of Read more

First OneWeb launch of 2021 carried out as planned to make up for lost time

Arianespace, through its Russian joint venture Starsem, has launched a Soyuz 2-1b/Fregat vehicle carrying 36 OneWeb satellites into low Earth Read more

OneWeb aims to “streamline” future constellation from 48,000 to 6,000 sats and announces further funding

In a surge of activity, OneWeb – recently purchased by British/Indian interests – has applied to the US FCC for Read more

Soyuz 2.1b/Fregat launches 36 OneWeb satellites from Vostochny

A Soyuz 2-1b/Fregat was launch from Vostochny in Eastern Russia at 1226 GMT on 18 December carrying 36 OneWeb communications Read more

Departure of Dominic Cummings loses UK Space Industry its biggest supporter in Downing Street

Dominic Cummings, the principal adviser to UK Prime Minister Boris Johnson, and the driving force for Brexit and the purchase Read more

November sale of OneWeb to British/Indian interest? Now approved by bankruptcy court and US agencies

The Bankruptcy Court for the Southern District of New York announced its approval of the joint British/Indian takeover bid of Read more

EchoStar Hughes reinvests in OneWeb project with second US$50 million

The Hughes Network Systems portion of satellite operator EchoStar Corp., announced on 27 July 2020 that it would be investing Read more

UK Govt teams with India’s Bharti Global telecoms company to get stake in OneWeb (Updated)

OneWeb, the partially completed low Earth orbit (LEO) communications satellite constellation, currently moribund in Chapter 11 bankruptcy protection, has at Read more

Cookies & Privacy

Click here to read about use of cookies on the website

Categories

Archives