SES and Intelsat are facing growing competition from firms providing services from low Earth orbits, like Elon Musk's Starlink. Photo: Handout / AIRBUS/AFP/FileEuropean satellite group SES will acquire US rival Intelsat for $3.1 billion, the companies said Tuesday, seeking to compete in a race for space-based internet service led by Elon Musk's Starlink.
SES and Intelsat said in a joint statement that 60 percent of the combined group's revenue would come from"high growth segments" and generate an annual core profit of 1.8 billion euros .The boards of both companies unanimously approved the transaction, which they expect to close in the second half of 2025 pending approval from regulators.
But it ended the year in the red with net losses of 34 million euros as video transmission receipts slid amid competition from fiber-optic video streaming services.The sector faces growing competition for space-based internet service, which satellite operator Eutelsat says could be worth $16 billion by 2030.