SES confirmed this week it’s in talks about potentially merging with rival satellite operator Intelsat. Both companies have previously acknowledged watching consolidation sweeping across their industry.
A merger would be of interest to telecoms, given the trend of some carriers and ISPs seeking to use satellite-delivered broadband as a back-up to wireless and wired networks. Also, Intelsat and SES are set to receive nearly $9 billion in combined proceeds for clearing C-band spectrum for cellular operators, although they have been locked in a long-running legal battle over how the money should be split, according to SpaceNews.
This year, Viasat and Eutelsat hope to gain regulatory approvals to acquire Inmarsat and OneWeb, respectively, to bolster their businesses amid rising competition from SpaceX’s Starlink broadband constellation. Since Viasat announced its deal for Inmarsat in November 2021, both SES and Intelsat have routinely faced questions about whether they could also merge to strengthen competition, but neither have directly addressed any talks until now.
As for the potential merger, SES told SpaceNews, “At this stage, there can be no certainty that a transaction would materialize.” The company did confirm it has “engaged in discussions regarding a possible combination with Intelsat.”
A merged group would generate revenues estimated to be around $4 billion.
Asked to comment, Intelsat SVP Corporate Communications and Marketing Clay McConnell said, “We do not comment on rumors and speculation.”
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