French State Bolsters Eutelsat to Rival Starlink

In a strategic move to enhance Eutelsat's competitive edge against rivals like Elon Musk's Starlink, the French government is poised to become the satellite company's largest shareholder through a capital infusion of 1.35 billion euros. This injection aims to bolster the debt-laden firm's market position.

The French state shareholding agency is set to contribute 717 million euros, which constitutes over half of the total capital increase. This significant investment will also see the agency acquiring stakes previously held by Bpifrance, the state-owned investment bank, thus elevating France's ownership to nearly 30%.

Finance Minister Eric Lombard emphasized the strategic importance of satellite connectivity for France's industrial and digital sovereignty, underlining the state's commitment to supporting Eutelsat's developmental trajectory. This financial maneuver underscores a broader governmental effort to maintain technological independence.

(With inputs from agencies.)