France will invest €717 million in Paris-based satellite operator Eutelsat, more than doubling its stake in Europe’s answer to Elon Musk’s Starlink.
French Economy Minister Éric Lombard wrote on X that the move “reflects a clear desire to make satellite connectivity a strategic lever for digital and industrial sovereignty for our country and for Europe.”
La France renforce sa participation au capital de l’entreprise @EutelsatGroup pour l’accompagner dans une étape décisive de son développement. Cette montée en puissance traduit une volonté claire : faire de la connectivité par satellite un levier stratégique de souveraineté… pic.twitter.com/LrgyNTJFTW
undefined Eric Lombard (@Eric_R_Lombard) June 19, 2025
Currently, the ownership in Eutelsat is split between France, with a 13.6% stake, and the United Kingdom, with a 10.9% stake. Following the move, France will hold 30% while the UK’s ownership will decrease to about 8%. India’s Bharti Space Limited will hold 18.7%.
The UK rescued OneWeb from bankruptcy in 2020, along with the Bharti group. Bharti and other core shareholders will reportedly invest in a two-part €1.35bn fundraising before the end of the year.
The value of the agreement was not disclosed, but FT reports the shares bounced 14% on Thursday. The fundraising is expected to close a €4bn gap in Eutelsat’s financing.
Eutelsat, which merged with Britain's OneWeb in 2023, is the second-largest LEO constellation in the world after Starlink, and manages a constellation of around 650 low Earth orbit (LEO) satellites. It is currently best positioned in Europe to rival Musk’s Starlink, providing global satellite internet coverage.
"US-European tensions put Starlink's sales momentum at risk in Europe and OneWeb is the only other low-earth orbit option," Stephane Beyazian, analyst at Oddo BHF, said.
"We expect customers procuring satellite connectivity solutions to manage the risks related to individual suppliers, which is why they may look for additional capacity providers," ING analyst Jan Frederik Slijkerman said.
In 2024, The European Commission signed a €10.6 billion concession agreement with the SpaceRISE consortium to create one of the biggest European cosmos infrastructure projects. It is planned to be launched in early 2030.
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