Intelsat and OneWeb today laid out plans for a mega-merger aimed at bolstering their satellite internet services, with a $1.8 billion investment boost from SoftBank.
The arrangement is a head-turner, due to the complicated conditions of the deal as well as its ambitious objective. It comes just a couple of months after Japan-based SoftBank announced a $1 billion investment in OneWeb, which is gearing up to launch a constellation of satellites for global internet access.
“We believe that combining Intelsat with OneWeb will create an industry leader unique in its ability to provide affordable broadband anywhere in the world,” Intelsat CEO Stephen Spengler said in a news release.
Spengler is due to head the combined company, which will keep the Intelsat name and remain headquartered in Luxembourg. OneWeb’s founder and executive chairman, Greg Wyler, will be executive chairman of the combined company’s board.
SoftBank will purchase common shares in the company for $5 per share, and take a 39.9 percent voting stake. The $1.7 billion investment and a series of debt exchange offers are aimed at reducing Intelsat’s debt by up to $3.6 billion.
Full Content: Space News
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI