Eutelsat Sells OneWeb Share to Airbus U.S. Space and Defense, Advances Asset Optimization

Written by Copernical Team Tuesday, 30 January 2024 20:55

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Paris, France (SPX) Jan 30, 2024

Eutelsat Group has completed the sale of OneWeb's 50% share in the Airbus OneWeb Satellites joint venture (AOS). This development marks a crucial step in Eutelsat's strategic management of its assets, aiming at portfolio optimization and debt reduction. The stake in Airbus OneWeb Satellites, a Florida-based business responsible for constructing the satellites for the OneWeb First Generatio

Eutelsat Sells OneWeb Share to Airbus U.S. Space and Defense, Advances Asset Optimization
by Erica Marchand
Paris, France (SPX) Jan 30, 2024

Eutelsat Group has completed the sale of OneWeb's 50% share in the Airbus OneWeb Satellites joint venture (AOS). This development marks a crucial step in Eutelsat's strategic management of its assets, aiming at portfolio optimization and debt reduction.

The stake in Airbus OneWeb Satellites, a Florida-based business responsible for constructing the satellites for the OneWeb First Generation constellation, has been acquired by its co-owner, Airbus U.S. Space and Defense, Inc. This acquisition by Airbus highlights the ongoing reshuffling and strategic realignment within the satellite and space industry.

Airbus OneWeb Satellites has been pivotal in the production of small satellites, particularly for OneWeb's ambitious broadband network. This network aims to deliver global broadband internet coverage, utilizing a constellation of low Earth orbit (LEO) satellites.

Massimiliano Ladovaz, a representative from Eutelsat Group, underscored the significance of this partnership and its future prospects. "We are proud to have partnered with Airbus in this joint venture which has assured the successful build of OneWeb's First Generation constellation, and we are confident the business will continue to thrive by addressing the growing demand for small sats, with a best-in-class, competitive offer," Ladovaz stated.

He also emphasized the benefits this move will bring to Eutelsat Group, notably in diversifying its range of suppliers for future in-orbit needs. Airbus remains one of Eutelsat's most trusted partners, suggesting a continued collaborative relationship despite the sale.

Eutelsat's decision to sell its share in AOS aligns with its broader strategy of managing its assets more effectively. By optimizing its portfolio, Eutelsat aims to reduce its debt and reposition itself more favorably in the competitive satellite communications market. This move also reflects the current trends in the space industry, where companies are increasingly looking to streamline operations and focus on core competencies.

The transaction's completion is not just a significant milestone for Eutelsat but also for Airbus and the broader space sector. Airbus U.S. Space and Defense's acquisition of the remaining stake in AOS strengthens its position in the satellite manufacturing sector, particularly in the growing market for small satellites. These satellites are essential for a variety of applications, including broadband internet, earth observation, and communications, underscoring the strategic nature of this acquisition.