The UK and French governments will each have a seat on the board of a new satellite operator aiming to take on billionaire space entrepreneurs Elon Musk and Jeff Bezos under merger terms being thrashed out on Sunday between Eutelsat and OneWeb.
Paris-listed Eutelsat and OneWeb, the space-based internet pioneer rescued from collapse by a $1bn British-led bailout in 2020, are close to agreeing an all-share deal that aims to create a company with the financial firepower to compete in the rapidly growing market for space-based connectivity.
A merger would address Eutelsat’s need for new growth to offset a declining satellite video business and OneWeb’s requirement for $2bn-$3bn in investment to complete its network and update its technology, according to people close to the deal.