Satellite telecom firms OneWeb and Intelsat announced plans to merge, and a fresh $1.7 billion investment from Japan's SoftBank to advance an ambitious internet in the sky plan.
The deal aims to create a financially stronger company with the flexibility to aggressively pursue new growth opportunities resulting from the explosion in demand for broadband connectivity for people and devices everywhere.
The merger and new cash infusion aims to accelerate OneWeb's plans for a network of low-Earth orbit satellites to deliver internet to remote areas of the globe.
The OneWeb network, which is slated to begin operating in 2022, would be combined with Intelsat's geostationary orbit satellites.
This is aiming to support an extensive set of mass-market applications, including for consumer broadband, connected cars, and other data services, according to the statement.
SoftBank, which in December announced it was investing $1 billion in OneWeb, on 28th March 2017 agreed to add US$1.7 billion to the combined company, giving it a 39.9% voting stake plus additional nonvoting shares.
The company will be domiciled in Luxembourg, and listed on the New York Stock Exchange, with manufacturing and other facilities in the United States.
OneWeb founder Greg Wyler, will be executive chairman of the new company.
Intelsat chief executive Stephen Spengler will keep the CEO title at the new company.
SoftBank last year announced its first investment in OneWeb after its chief executive Masayoshi Son met President Donald Trump and pledged to invest $50 billion in the US economy and create 50,000 jobs.
OneWeb intends to launch 684 low-orbit satellites, to cover the entire planet and deliver internet to areas where conventional land systems are not economical.
IntelSat: Know More- Headquarters: Luxembourg City
- CEO: Stephen Spengler (since 1 Apr 2015)
- Founded: 20 August 1964
- Number of employees: 1,110 (2011)
- Parent organization: INTELSAT LTD
