Headlines
Eutelsat needs to close funding gap to gain ground on Starlink
Published by Global Banking and Finance Review
Posted on September 30, 2025
4 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 30, 2025
4 min readLast updated: January 21, 2026
Eutelsat seeks European investment to close its funding gap and compete with Starlink, with France leading a 750 million euro investment.
By Gianluca Lo Nostro and Florence Loeve
GDANSK/PARIS (Reuters) -Satellite operator Eutelsat must secure investment from more European countries to bolster its efforts to challenge billionaire Elon Musk's Starlink, EU lawmakers and analysts say following a commitment by France.
The debt-laden Franco-British company has gained unprecedented attention this year from European governments as the policies of President Donald Trump have raised concern about their reliance on U.S. satellite companies.
A 1.5-billion-euro ($1.8 billion) investment in Eutelsat led by France is set to be approved by shareholders on Tuesday, after which the company hopes other countries will follow suit.
President Emmanuel Macron has urged other countries and companies to invest, framing the decision as a matter of European sovereignty.
EUROPE'S AMBITION IN SPACE
Christophe Grudler, a French member of the European Parliament who has urged the European Commission to find alternatives to Starlink for Ukraine as the war with Russia drags on, said Eutelsat is one of Europe's best responses to Starlink but it requires political commitment.
"France’s decision to strengthen its stake is a strong political act. But it cannot stop there. Germany, and other member states, should also step in. One country alone cannot carry this continental ambition in space," he told Reuters.
In the latest fundraising, France will commit 750 million euros for a 29.65% stake, while Britain will contribute 163 million euros to retain a 10.89% share in a two-stage investment plan.
Other investors are Indian billionaire Sunil Mittal's Bharti Space, shipping group CMA CGM, and Fonds Strategique de Participations, a French insurer-backed investment fund.
UKRAINE TALK REVIVES EUTELSAT STOCK
Eutelsat - which has introduced a new CEO, chairman and a revamped brand identity - confirmed to Reuters its aim to involve more European countries, though discussions remained in early stages.
Initial talks between France and Germany took place at the Franco-German council of ministers on August 29, the company said in an emailed statement.
The German and French governments did not respond to Reuters requests for comment.
Shareholders involved in the current capital increase declined to comment.
Eutelsat's stock has rebounded from all-time lows on talks with the European Union to potentially replace Starlink in Ukraine.
Operational planning and coordination with member states and relevant stakeholders on Ukraine continue, Commission spokesperson Thomas Regnier told Reuters in an emailed response to queries.
Germany already pays for Ukraine's access to Eutelsat and Eutelsat has delivered thousands of user terminals to Kyiv.
FRANCE GIVES VITAL LIFELINE TO EUTELSAT
Eutelsat told Reuters that it was not directly affected by the collapse on September 8 of the French government. However, the company - which is dependent on France pledging immediate financial relief - underlined the need for stability and continuity.
Asked about the risk of political turmoil possibly delaying France's 2026 budget, Eutelsat said it would only affect the next fiscal year.
"In terms of timing, it's unlikely to be impacted by a deadlock at this stage."
The funding is expected to reduce Eutelsat's 2.6-billion-euro debt and help deploy 340 low Earth orbit (LEO) satellites for its OneWeb constellation costing over 2 billion euros.
Eutelsat acquired OneWeb in 2023 to capitalise on growing demand for satellite internet.
But the gap with Starlink is stark. OneWeb has over 650 satellites compared with Starlink's nearly 8,000. Eutelsat has downplayed Starlink's lead, maintaining it stays competitive with government and corporate customers.
Bernstein analyst Aleksander Peterc said French and UK backing has already made a significant difference but funding into the next decade will be contingent on Eutelsat's improved profitability and cash generation.
"The addition of Germany as a core shareholder would further solidify Eutelsat’s position as the prime sovereign European LEO connectivity provider," he said.
Stifel analyst Antoine Lebourgeois was more cautious, saying the capital increase was a short-term lifeline and not a long-term cure.
"Support from European governments is a crucial first step and a strong signal, but it may not be sufficient on its own to secure OneWeb's long-term viability," he said.
"Given the intense competition and economies of scale of players like Starlink, OneWeb will likely need a more substantial and sustained commitment from the public sector to truly thrive as a European alternative."
($1 = 0.8557 euros)
(Reporting by Gianluca Lo Nostro in Gdansk, Florence Loève in Paris, Additional reporting by Gus Trompiz in Paris; Editing by Matt Scuffham and Emelia Sithole-Matarise)
France will commit 750 million euros for a 29.65% stake in Eutelsat as part of a 1.5-billion-euro investment plan.
Eutelsat aims to secure more investment from European countries and plans to deploy 340 low Earth orbit satellites for its OneWeb constellation.
Eutelsat's stock has rebounded from all-time lows due to talks with the European Union about potentially replacing Starlink in Ukraine.
Eutelsat faces significant competition from Starlink, which has nearly 8,000 satellites compared to OneWeb's over 650, highlighting the need for sustained public sector support.
Germany already pays for Ukraine's access to Eutelsat and is expected to be a key player in future funding discussions to support Eutelsat's initiatives.
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