SoftBank Orchestrates Satellite Deal to Expand Internet Reach

Japanese telecom company SoftBank Group is orchestrating a deal between US satellite startup OneWeb and debt-laden satellite operator Intelsat SA in an attempt to deliver faster and cheaper internet connections world-wide.

OneWeb, which is 40 percent-owned by SoftBank, will buy Intelsat, combining two very different types of satellite fleets that would offer low-cost, versatile connectivity spanning the globe. As part of the deal, SoftBank will inject $1.7 billion into the combined company, in which it will hold a 40 percent stake. The deal, which is subject to approval by Intelsat bondholders, would lower Intelsat’s roughly $14.5 billion debt by about $3.6 billion, while allowing OneWeb to further expand its ambitious satellite-production and deployment plans in the next decade.