On June 19, 2025, France’s government and major investors committed to a landmark €1.35 billion capital raise to strengthen Eutelsat as Europe’s answer to Elon Musk’s Starlink. The investment not only secures Eutelsat’s future but also signals Europe’s strategic push toward space-based digital sovereignty.
A Strategic Capital Infusion
The French state will be the primary driver behind this financing effort. Contributing €717 million, it will increase its ownership in Eutelsat—from 13.6% to nearly 30%—by also acquiring Bpifrance’s existing stake. The remaining funds will come through a rights issue and participation from core partners like India’s Bharti, shipping giant CMA CGM, and France’s Fonds Stratégique de Participations.
The capital raise addresses multiple pressures: Eutelsat’s elevated debt—nearly four times its EBITDA—requires urgent reduction. Officials forecast this influx will reduce net debt to approximately 2.5× EBITDA, thus enabling future growth and lowering borrowing costs.
Pivoting Toward Low‑Earth Orbit Connectivity
Since merging with OneWeb in September 2023, Eutelsat has redirected its business away from its historic geostationary television broadcast roots toward LEO-based broadband connectivity. The merger gave the Group access to over 600 satellites—currently the world’s second-largest LEO satellite constellation.
But with Starlink operating more than 7,000 satellites, and accelerating development of its next-generation LEO systems, Eutelsat recognizes the need for massive expansion. The latest funding aims to support this growth, allowing the launch of new satellite generations and network upgrades, including support for Europe’s own secure government constellation, IRIS².
Europe’s Digital Sovereignty in Orbit
Beyond commercial ambitions, the capital round carries broader geopolitical significance. France has framed this as a landmark step in maintaining Europe’s industrial and digital sovereignty, reducing reliance on American space infrastructure. Eutelsat’s leadership and French officials emphasized the move as pivotal to Europe’s independence in satellite technology and connectivity.
Already, France has entered a 10‑year military communications agreement with OneWeb, highlighting the strategic value of satellite broadband for defence and governmental use.
Next Steps for Eutelsat
The €1.35 billion raise unfolds in two tranches:
- Reserved share issuance: €716 million at €4/share—around a 32% premium over recent market prices
- Rights issue: €634 million to all shareholders, with the UK government retaining its special rights to participate, though its future involvement remains unclear
Post-raise, the Group’s revenue is projected to grow—particularly with OneWeb’s contribution—to €1.5–1.7 billion by FY 2028/29.
Europe’s Cosmic Comeback
Eutelsat today stands at a transformational crossroads. Reinforced with fresh capital, it’s not only tackling its debt but arming itself to challenge Starlink’s dominance. The company is now deeply woven into European ambitions like IRIS², which aims to deploy hundreds of satellites by 2030 to ensure sovereign, secure connectivity.
Far from being a mere telecom provider, Eutelsat is fast evolving into a national champion, powering both commercial and governmental satellite services under a European banner. The €1.35 billion infusion represents a significant gamble—but if all goes to plan, Europe could soon have its own Starlink-style constellation serving economies, governments, and industries across the continent.
