Luxembourg’s most prominent technology ambassador, its satellite manufacturer SES, is holding talks with the US-based and world’s most prominent communications satellite operator, Intelsat, are holding talks over a merger. If it materialises, the SES-Intelsat merger could be one of the most lucrative sat-com partnerships, valued at more than USD 10 billion, including debt.
SES has confirmed the merger but has not divulged greater details. SES said, “In response to rumours in the market, SES S.A. confirms that the company has engaged in discussions regarding a possible combination with Intelsat. At this stage, there can be no certainty that a transaction would materialise.”
The SES-Intelsat could join a long line of satellite industry mergers, especially the ongoing merger discussions between OneWeb and Eutelsat and the US-based ViaSat’s acquisition of the UK-based Inmarsat for USD 7.3 billion.
The mergers in the satellite communications industry, particularly among the geostationary satellite operators, result from the massive market shakeup from the competitive Low Earth Orbit (LEO) operators, particularly SpaceX and OneWeb. The merging or merged geostationary players are looking to enter the competitive LEO satellite communications market.