Intelsat, SES in $10bn merger talks

• The satellite sector is in M&A mode
• The latest to consider a marriage are Intelsat and SES
• A deal would be worth about $10bn, according to reports

Satellite giants Intelsat and SES are in merger discussions regarding a deal that, according to Bloomberg, would be worth about US$10bn and create a company with annual revenues of about US$4bn. 

Following Bloomberg’s article that suggested talks were underway, SES issued a statement confirming the negotiations.

“In response to rumours in the market, SES S.A. confirms that the company has engaged in discussions regarding a possible combination with Intelsat,” it noted. “At this stage, there can be no certainty that a transaction would materialise. The Board of SES remains fully committed to acting in the best interest of SES and its shareholders,” it added. 

The news comes as Viasat waits to see if it will get clearance to acquire Inmarsat in a $7.3bn deal, while Eutelsat is in the process of trying to acquire OneWeb, in which it is already a stakeholder, in a $3.4bn deal. 

- Ray Le Maistre, Editorial Director, TelecomTV