While Eutelsat was announcing wedotv, the global ad-supported streaming TV network, that signed a new deal to include three of their free-to-air streaming channels on Eutelsat’s HOTBIRD satellites at 13° East, there is also another issue regarding obtaining fresh funding to save OneWeb, according to Bloomberg. The minimum amount needed is €1.5 billion, that looms over Eutelsat when their total market capitalization is currently around €1.2 billion.
The OneWeb constellation of low Earth orbit satellites is seeking to compete with SpaceX’s Starlink, as well as Jeff Bezos’ Project Kuiper LEO system.
Eutelsat’s new CEO, Jean-François Fallacher is seeking new funding to save OneWeb and the industry has confidence expecting him to be successful. “After all, why would he have taken on the job?,” asked one observer. His former employer, telco Orange, is already helping by increasing its guaranteed contracts with Eutelsat for OneWeb capacity. Eutelsat has also been in talks with the French government, investor Fonds Strategique de Participations, shipping company CMA CGM, and the UK government to assist with the funding.
It is anticipated that ‘fresh cash’ could possibly minimize Eutelsat’s current key shareholders in the form of the UK government (and its ‘golden share’) as well as Bharti Group. South Korea’s Hanwha voted and stated it will sell off its stake, and France’s Telecom/Orange is thought to be the providing the funds.
Eutelsat’s share price is down to a low of €2.53, compared to March’s €9.30. Add to that analysts at investment bank BNP-Paribas have a price target for Eutelsat of €1.