Intelsat Ends Merger Negotiations with SES

Intelsat has terminated discussions regarding a potential merger with rival company SES, as confirmed by statement from SES.

"SES announces today that discussions regarding a possible combination with Intelsat have ceased. On 29 March 2023, SES had confirmed that the company engaged in discussions with Intelsat and that there could be no certainty that a transaction would materialise. "

The two companies had been engaged in talks for three months with the aim of forming a partnership that would generate approximately $4 billion in revenues. This proposed merger was seen as a means of bolstering their defenses against SpaceX's Starlink broadband constellation, which poses a threat to their respective satellite broadband markets.

The potential transaction between Intelsat and SES followed closely on the heels of Viasat's recently finalized merger with Inmarsat, as well as an ongoing consolidation deal being pursued by Eutelsat and OneWeb.

Despite extensive discussions, Intelsat and SES were unable to reach an agreement on their potential combination. One of the key points of contention between the two operators was the distribution of the substantial proceeds derived from clearing the C-band spectrum.

Intelsat officially informed SES of its decision to withdraw from the merger talks on June 21 citing the fact that SES would not agree to certain business fundamentals important to Intelsat stakeholders.