Intelsat and SES have ended talks to form a $10 billion satellite giant. The deal would have created a major player in the satellite market. However, it fell apart due to disagreements between the two companies.
The talks had been ongoing for several months, and a deal was close to being finalized. Yet, the breakdown occurred over disputes about valuation and deal structure.
The collapse of the talks is a setback for both Intelsat and SES. It leaves them facing increased competition from new entrants like SpaceX’s Starlink and Amazon’s Project Kuiper.
Both Elon Musk and Jeff Bezos have been expanding their satellite operations, putting pressure on traditional satellite operators.
Intelsat and SES, as established satellite operators, find it challenging to compete with the new entrants.The market dynamics have shifted, and the collapse of the Intelsat-SES deal is indicative of the increasing competitiveness in the satellite industry. The future announcement of other major consolidation deals remains uncertain.
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