French Investment Strengthens Eutelsat Space Ambitions
Shares in Eutelsat rose by 6% on Friday morning following a major announcement from the French government. France revealed it would become the satellite company’s largest shareholder after a €1.35 billion ($1.55 billion) capital increase. The move aims to bolster Eutelsat’s position in the global satellite market, especially against competitors like Elon Musk’s Starlink.
The French finance ministry stated that this investment is essential for Europe’s space sovereignty. Eutelsat owns the world’s second-largest constellation of low-Earth orbit (LEO) satellites, making it a key player in the race for global connectivity.
Macron Highlights Strategic Importance
French President Emmanuel Macron voiced his support for the deal on Friday via a post on X. He emphasised that enhancing Eutelsat’s capital is vital for securing France’s independence in space technology. Macron also stressed that this step would pave the way for broader European strategic autonomy in the field.
Eutelsat confirmed in a statement that other major shareholders would also contribute to the capital increase. However, it remains unclear whether the United Kingdom, which currently holds a 10.9% stake, will participate in the new funding round.
Growing Demand Drives Investment Needs
Eutelsat’s need for fresh capital follows its 2023 merger with UK-based OneWeb. The merger aimed to push the group’s annual sales to $2 billion by 2027. It also laid out plans for launching OneWeb’s second-generation LEO satellites later this decade.
Since then, the company has revealed it will require more than triple the originally estimated number of satellites. As a result, it now seeks up to €2.2 billion in additional funding to meet the growing demand for high-speed, global satellite internet services.
This capital injection marks a key step in ensuring that Europe remains competitive in the fast-moving space communications sector.
with inputs from Reuters
