Eutelsat, the Paris-based satellite operator, has secured a substantial €1.35 billion capital increase. This move comes amidst strong market momentum in the LEO-enabled connectivity market. The French state played a significant role, bolstering its stake in the company.
The increased investment follows a recent 10-year deal with the French military for satellite communication services. This deal highlights the growing strategic importance of low earth orbit (LEO) connectivity. The agreement mirrors similar developments in the sector, such as the impact of Elon Musk’s Starlink. Notably, OneWeb, a key player in this space, initially received a bailout from the UK Government and may receive further investment.
The global satellite connectivity market is projected to experience a robust 12% annual growth rate from 2025 to 2029. The LEO B2B connectivity market, valued at over $2.1 billion in 2025, is expected to grow fivefold in the next eight years. This presents significant growth opportunities.
Eutelsat is uniquely positioned as the only GEO-LEO operator and the only European operator with a fully operational LEO network. Its acquisition of OneWeb has expanded its coverage, anticipated to be complete by the end of 2026. However, this expansion has also contributed to a €4 billion financing gap, driven by the decline in the broadcast services market.
To address this, Eutelsat is raising €1.35 billion through a reserved capital increase (€716 million at €4 per share) and a rights issue (€634 million). The capital increase will be funded by the French State (via Agence des Participations de l’Etat), Bharti Space Limited, CMA CGM, and Le Fonds Stratégique de Participations.