The French government is set to become the largest shareholder in Eutelsat following a €1.35 billion capital increase designed to reinforce Europe’s satellite infrastructure and reduce reliance on US-based providers such as Elon Musk’s Starlink.
The move will see France invest €717 million directly and acquire the stake held by Bpifrance, raising its total holding to 29.99%, officials confirmed this week.
The transaction represents a significant shift in ownership structure at the Paris-headquartered satellite operator, whose strategic merger with UK-based OneWeb in 2023 repositioned it as a key European player in low-Earth orbit (LEO) satellite communications. The latest capital injection is aimed at financing the expansion of the OneWeb satellite constellation, as Eutelsat seeks to challenge the growing dominance of Starlink, which currently operates over 7,000 LEO satellites globally.
A French government official described the investment as essential for ensuring Europe’s sovereign access to space-based infrastructure at a time of increasing geopolitical tension.
“We are supporting a decisive stage in its development,” said Economy Minister Éric Lombard. “Satellite connectivity is a strategic issue for our industrial and digital sovereignty.”
Strategic Shift and Ownership Restructuring
France’s increased stake follows years of gradual state involvement in Eutelsat. Prior to the transaction, the French state held 13.6% of the company. Under the new arrangement, the state shareholding agency will inject €717 million—over half the planned fundraising—and will also acquire Bpifrance’s shareholding. The total cost to the French state is expected to reach approximately €1 billion.
Participation in the capital increase has also been confirmed by other major shareholders including Indian billionaire Sunil Mittal’s Bharti Space, shipping company CMA CGM, and the Fonds Stratégique de Participations, an investment fund backed by French insurers. However, the position of the UK government, which currently holds 10.9%, remains uncertain.
A French official indicated that discussions were ongoing with the UK regarding its participation in the share sale. The British government has not confirmed whether it will inject additional capital, although it retains special share rights over OneWeb under the terms of the 2023 merger. Should the UK abstain, its holding would decrease to around 8%.
Financing Satellite Expansion
Eutelsat’s expanded funding is intended to support its long-term plan for growing the OneWeb network. The company currently operates over 600 LEO satellites positioned approximately 1,200 km above Earth, forming the world’s second-largest constellation after Starlink.
The merger with OneWeb marked a strategic pivot for Eutelsat, moving away from traditional broadcast services and towards secure LEO-based connectivity solutions. This transition aligns with broader European objectives for digital independence and resilient communications infrastructure, particularly as relations with the United States have cooled under the Trump administration.
Eutelsat has previously forecast that the merger would boost annual revenues to $2 billion by 2027. However, following further technical assessments, the group now estimates that it will need three times the previously planned number of satellites to achieve full coverage and commercial viability. This expansion is expected to require €2.2 billion in total financing.
The French government’s investment is thus seen as a foundation for bridging this funding gap, offering Eutelsat the capital to accelerate deployment of its second-generation LEO satellites, expected to launch by the end of the decade.
Context: European Autonomy and US Competition
The French capital injection comes as Europe seeks alternatives to US-based satellite operators in the wake of growing strategic concerns. Starlink’s dominant position, and its use in both civilian and military applications, has prompted a reassessment of European capabilities. Its rapid commercial adoption and technical reach have made it the default option in several markets that Europe now aims to reclaim.
Eutelsat’s expansion also comes amid broader European initiatives, including the EU’s IRIS² programme, which aims to create a secure and autonomous satellite communications network for public and governmental use. The French-led reinforcement of Eutelsat could position the firm as a key operator within that framework.
Outlook
The French government’s move to nearly triple its stake in Eutelsat marks a decisive step towards securing Europe’s position in the space communications race. While significant funding challenges remain, the state-led capital increase provides Eutelsat with the financial means to compete more effectively with its American and Chinese counterparts. Whether other European stakeholders, particularly the UK, choose to participate at the same scale will have a lasting impact on the project’s trajectory and on Europe’s ability to develop independent LEO communications capacity.
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