Satellite Operators SES, Intelsat Discuss Merger as Industry Looks to Consolidate
Satellite operator SES SA on Wednesday said it is in talks with Intelsat about a possible combination, the latest example of satellite-internet providers seeking to merge as competition intensifies.
Any deal between the two companies would position them to better compete with Starlink, the satellite-internet service operated by
Elon Musk’s
SpaceX.
In a statement, SES said there is no guarantee that a merger would occur. The two companies didn’t immediately respond to a request for comment.
Satellite operators have been looking to combine.
Viasat Inc.
VSAT 2.00%
in 2021 proposed to acquire Inmarsat in a $7.3 billion deal.
Eutelsat Communications SA
ETCMY 0.92%
and OneWeb in 2022 said they would combine.
Starlink, which uses a fleet of satellites to enable what is designed to be high-speed internet connections, in February adjusted prices for some of its subscribers, The Wall Street Journal reported. Starlink grew quickly last year, according to SpaceX, and has been targeting both consumer and business customers.
In addition to discussing mergers, satellite operators have been taking steps to bolster their services.
Executives at Viasat told investors in February that the launch of a new satellite in April would help it address bandwidth constraints in the U.S. that had affected its residential business. SpaceX is scheduled to handle that launch on one of its rockets.
SES earlier this month said SpaceX launched two of its satellites into orbit. Those are part of a fleet used to offer TV, radio and data services in the U.S. Inmarsat in February deployed a satellite through SpaceX. That satellite is scheduled to connect its first customers next year.
Bloomberg earlier reported on merger talks between SES and Intelsat.
—Mauro Orru and Micah Maidenberg contributed to this article.
Write to Denny Jacob at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Satellite operator SES SA on Wednesday said it is in talks with Intelsat about a possible combination, the latest example of satellite-internet providers seeking to merge as competition intensifies.
Any deal between the two companies would position them to better compete with Starlink, the satellite-internet service operated by
Elon Musk’s
SpaceX.
In a statement, SES said there is no guarantee that a merger would occur. The two companies didn’t immediately respond to a request for comment.
Satellite operators have been looking to combine.
Viasat Inc.
VSAT 2.00%
in 2021 proposed to acquire Inmarsat in a $7.3 billion deal.
Eutelsat Communications SA
ETCMY 0.92%
and OneWeb in 2022 said they would combine.
Starlink, which uses a fleet of satellites to enable what is designed to be high-speed internet connections, in February adjusted prices for some of its subscribers, The Wall Street Journal reported. Starlink grew quickly last year, according to SpaceX, and has been targeting both consumer and business customers.
In addition to discussing mergers, satellite operators have been taking steps to bolster their services.
Executives at Viasat told investors in February that the launch of a new satellite in April would help it address bandwidth constraints in the U.S. that had affected its residential business. SpaceX is scheduled to handle that launch on one of its rockets.
SES earlier this month said SpaceX launched two of its satellites into orbit. Those are part of a fleet used to offer TV, radio and data services in the U.S. Inmarsat in February deployed a satellite through SpaceX. That satellite is scheduled to connect its first customers next year.
Bloomberg earlier reported on merger talks between SES and Intelsat.
—Mauro Orru and Micah Maidenberg contributed to this article.
Write to Denny Jacob at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8