Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0778
    -0.0015 (-0.14%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2624
    +0.0002 (+0.02%)
     
  • USD/JPY

    151.3490
    -0.0230 (-0.02%)
     
  • Bitcoin USD

    69,879.91
    -747.36 (-1.06%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

Eutelsat, OneWeb Brace To Unite To Compete SpaceX: Report

  • Eutelsat Communications SA (OTC: ETCMY) and OneWeb Ltd braced to combine in an all-share deal.

  • The deal valued the U.K. satellite operator at $3.4 billion, Bloomberg reports.

  • The initiative aimed to create a European champion to rival the likes of Tesla, Inc (NASDAQ: TSLA) CEO Elon Musk’s SpaceX.

  • The deal offers Eutelsat a “unique position” on the market and has the potential to generate €1.5 billion ($1.53 billion) in increased revenue, investments, and cost synergies, the companies said.

  • Also Read: Here’s Why OneWeb Resorted To Elon Musk’s SpaceX For Satellite Launch

  • OneWeb shareholders will hold 50% of Eutelsat, which will continue to be listed in Paris and seek a London Stock Exchange listing.

  • OneWeb shareholders would receive 230 million newly issued Eutelsat shares representing 50% of the enlarged share capital.

  • The combined entity will have a €1.2 billion revenue and €0.7 billion EBITDA for fiscal 2022-2023.

  • The U.K. and French governments have stakes in OneWeb and Eutelsat, respectively.

  • The U.K. will continue to own a particular share, giving it certain veto rights over strategic decisions.

  • OneWeb will retain its branding and operate the low-orbit business of the combined group, which will have a primary listing in Paris.

  • Eutelsat Chair Dominique D’Hinnin Eis will become the Chairman of the combined entity, with his OneWeb counterpart Sunil Bharti Mittal as Co-chair.

  • Eutelsat CEO Eva Berneke will run the new group.

  • The new company will combine Eutelsat’s geostationary earth orbit satellites and OneWeb’s low orbit satellites.

  • Previously, Amazon.com Inc’s (NASDAQ: AMZN) Kuiper Systems LLC sought to launch another 4,538 satellites intensifying rivalry with SpaceX.

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement