France’s Eutelsat Invests $550 Million in Musk Satellite Rival OneWeb

A rocket carrying 36 OneWeb satellites launches from Russia on March 25, 2021.

Photographer: Yuri Smityuk/TASS/Getty Images

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Eutelsat Communications SA will pay $550 million in cash for a 24% stake in low-earth orbit satellite startup OneWeb, it said Tuesday.

The Paris-based operator’s investment will be funded by proceeds from selling airwaves to U.S. phone operators, Eutelsat said in a statement. It will gain seats on OneWeb’s board, and the transaction will dilute the stakes of its other major shareholders, the British government, Indian telecom group Bharti Global, and SoftBank Corp. Britain retains a golden share giving it veto powers on deals.