European satellite telecommunications provider SES is exploring a possible merger with Intelsat, another tie-up in the sector as the race for space-based internet service heats up.
In response to rumors in the market, SES confirms that the “company has engaged in discussions regarding a possible combination with Intelsat.”
The firm added that there is no certainty that a transaction “would materialize.”
The satcom sector has been seeking to consolidate in the wake of the arrival on the scene of billionaire players Elon Musk (SpaceX’s Starlink satellites) and Jeff Bezos (Amazon’s Project Kuiper).
Several other mergers have already been announced in the satellite scene, including the merger of France's Eutelsat with UK counterpart OneWeb as well as that of US provider Viasat and Britain's Inmarsat.
According to Bloomberg, a tie-up between SES and Intelsat would lead to the creation of a $10 billion-plus group and require approval from the Luxembourg government, SES's top shareholder.
Intelsat has bounced back strongly after being placed in Chapter 11 bankruptcy in May 2020, after which it embarked on a massive restructuring. On the other hand, SES generated over €1.9 billion in revenue by the end of 2022.