{"id":58428,"date":"2020-12-15T17:16:00","date_gmt":"2020-12-15T09:16:00","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/it-was-supposed-to-be-a-perfect-match-an-autopsy-of-three-failed-satellite-industry-takeovers\/"},"modified":"2020-12-15T17:16:00","modified_gmt":"2020-12-15T09:16:00","slug":"it-was-supposed-to-be-a-perfect-match-an-autopsy-of-three-failed-satellite-industry-takeovers","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/it-was-supposed-to-be-a-perfect-match-an-autopsy-of-three-failed-satellite-industry-takeovers\/","title":{"rendered":"It Was Supposed to be a Perfect Match: An Autopsy of Three Failed Satellite Industry Takeovers"},"content":{"rendered":"<p>In commercial satellite industry circles, merger and acquisition (M&amp;A) deals that will \u201cchange everything\u201d are whispered about like a six-mile-wide asteroid tracking too close to the Earth. Will this be the one?<\/p>\n<p>The gossip is almost always more alluring than it is true.  Yet, every time an executive like Eutelsat CEO Rodolphe Belmer goes on record stating a desire for more consolidation among global operators, we can\u2019t help but dream about teams of accountants and lawyers banging away on their calculators, trying to breathe life into a historic corporate takeover. <\/p>\n<p>\t\t\t\t<img loading=\"lazy\" width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/TkrG2Y4HRNKhYbUSaVF4_VS_010121_DGTL_Cover-300x225.jpg\" class=\"attachment-medium size-medium\" alt=\"\" style=\"width: 120px; height: auto;\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/TkrG2Y4HRNKhYbUSaVF4_VS_010121_DGTL_Cover-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/TkrG2Y4HRNKhYbUSaVF4_VS_010121_DGTL_Cover-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/TkrG2Y4HRNKhYbUSaVF4_VS_010121_DGTL_Cover-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/TkrG2Y4HRNKhYbUSaVF4_VS_010121_DGTL_Cover.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\">\t\t\t<\/p>\n<h3 class=\"fs-5 mt-0\">Explore the January 2021 Issue<\/h3>\n<p class=\"mb-0 fs-smaller text-balance\">Check out more from this issue and find your next story to read.<\/p>\n<p>\t\t\t<button class=\"btn btn-primary\" type=\"button\" data-bs-toggle=\"offcanvas\" data-bs-target=\"#offcanvasMENU\" aria-controls=\"offcanvasExample\" aria-label=\"button\" style=\"white-space: nowrap;\"><br \/>\n\t\t\t\tView More <i class=\"bi bi-arrow-right-circle\"><\/i><br \/>\n\t\t\t<\/button><\/p>\n<p>According to Harvard Business Review research conducted over the past decade, somewhere between 70 percent and 90 percent of all M&amp;A transactions fail. Research conducted by global management consulting firm McKinsey &amp; Company between 2013 and 2018, shows that M&amp;A deals involving telecommunications services are about 30 percent more likely to be cancelled than deals in other sectors. \u201c[M&amp;A] cancellation rates in most industries fluctuated from year to year. The communications-services sector proved to be the only outlier,\u201d the firm wrote in its research, adding that communications sector mergers are also twice as likely to face antitrust challenges as mergers in other sectors.<\/p>\n<p>Transactions involving satellite companies face unique challenges, according to analyst Steve Kaufman, a corporate and finance partner and satellite practice co-head at Hogan Lovells. \u201cIn order to properly assess the value of a satellite industry M&amp;A transaction, parties on both sides have to be able to answer some tough questions,\u201d says Kaufman. \u201cThe technology involved is complex, and rapidly changing. Prices for satellite services and technology are also rapidly changing, but the demand characteristics for those satellite services are often uncertain.\u201d<\/p>\n<p>This feature explores the unusual string of events that led to the demise of three recent M&amp;A deals, which under slightly different circumstances, would have changed the satellite industry landscape (and not always for the better).<\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a6992272d0dc;googletag.cmd.push(function(){var AIMAP_29b58f13885ebf8ea6b032f958eb0748 = googletag.sizeMapping().addSize([992, 100], [[970, 90], [970, 250]]).addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_737ce075cc05dd766c8f8ea08f3faa73 = googletag.sizeMapping().addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_21fe3bcfb86a8660aba4e721ee9338f3 = googletag.sizeMapping().addSize([1200, 100], [970, 250]).addSize([768, 100], [600, 300]).addSize([320, 100], [300, 250]).build();AIAD_fcd45f981d570e35cee941b23edc69c7_6a6992272d0dc = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a6992272d0dd').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a6992272d0dd'); });<\/script><\/p>\n<h3>Case Study 1 \u2013 Market Consolidation Rarely Plays Out as Expected<\/h3>\n<p>\u201cWe have a Mexican standoff in the industry right now,\u201d Mike Thompson, a consultant at Access Partnership, told Via Satellite back in June 2018. \u201cEveryone knows that consolidation will happen, but no one seems to want to make the first move until now.\u201d<\/p>\n<p>At the time, Thompson was in the majority of analysts who believed that U.K. satellite operator Inmarsat was ripe for a takeover, which would kick off an expected wave of satellite industry consolidation due to over-investment and falling transponder prices. While Inmarsat\u2019s older generation satellites were generating reasonably steady revenues, the company hadn\u2019t yet capitalized on its newer Global Xpress Ka-band network. Thompson believed that Inmarsat was losing first-mover advantage on Ka-band and would be smart to accept a buyout before Ka- bandwidth prices fell too far. <\/p>\n<p>Echostar was the first to step up with an offer. The U.S. broadcast satellite operator made a series of successful acquisitions in the 2010\u2019s, most notably Hughes Network Systems in 2011, along with Solaris Mobile in 2014 and Helios Wire in 2019.  Analysts believed that EchoStar wanted access to Inmarsat\u2019s global Ka-band network to establish mobile connectivity business in the airline and maritime shipping sectors. <\/p>\n<p>But such a move would carry risk for EchoStar, which was still a broadcast company and not familiar with serving mobile transportation industries. According to sources familiar with the negotiations, the prospect of competing with Low-Earth Orbit (LEO) services under development by SpaceX, OneWeb, and Telesat, factored into EchoStar\u2019s decision to proceed. On June 8, 2018, EchoStar put in an undisclosed bid to buy Inmarsat for less than $3.2 billion. We know it was for less than $3.2 billion, because that was the amount that Inmarsat said they received in a follow-up bid a month later \u2014 an offer they rejected and described as \u201cvery significantly undervalued\u201d and also, curiously, \u201chighly preliminary.\u201d <\/p>\n<p>EchoStar quickly withdrew its bid and the deal fell through. In an August 2018 interview with Space News, EchoStar Chairman Charlie Ergen blamed British takeover laws for the collapse of negotiations with Inmarsat. U.K. Competition and Markets Authority (CMA) regulations require parties of M&amp;A negotiations to make certain details public, including the submission of bids. Ergen told Space News that he would have preferred the details to remain private, and that discretion may have made it easier to reach agreement.<\/p>\n<p>Giles Thorne, Jefferies satellite equity analyst, told Via Satellite at the time that he believed EchoStar\u2019s bid for Inmarsat was less about sector consolidation and more about obtaining leverage in spectrum negotiations, following news that Ligado Networks was on the cusp of getting its license modification reinstated by the FCC.  <\/p>\n<p>\u201cThere was neither enough overlap nor vertical integration in this sector to make consolidation between EchoStar and Inmarsat particularly synergistic, except in a handful of very select instances,\u201d Thorne said. <\/p>\n<p>Despite rumors that Eutelsat or even Japan\u2019s SoftBank would step in with their own offers, Inmarsat was eventually bought out by a private equity consortium in December 2019 for $3.3 billion. Ironically, Hughes Network Systems would eventually go on to work with Inmarsat in 2020 to utilize acquired assets acquired from OneWeb to do exactly what analysts believed EchoStar was trying to do with an Inmarsat purchase \u2013 launch a mobile connectivity service for airlines.<\/p>\n<h3>Case Study 2 \u2013 Bad Timing and Unexpected Crisis Prevents Backhaul Market Domination<\/h3>\n<p>At the beginning of 2020, Comtech Telecommunications and its rival Gilat Satellite Networks controlled a combined 80 percent of the global cellular backhaul market. And, it came to many as a surprise, when Comtech kicked off the new year by announcing an agreement to acquire its Israeli-based competitor for an enterprise value of approximately $532.5 million.<\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a6992272d511;googletag.cmd.push(function(){var AIMAP_29b58f13885ebf8ea6b032f958eb0748 = googletag.sizeMapping().addSize([992, 100], [[970, 90], [970, 250]]).addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_737ce075cc05dd766c8f8ea08f3faa73 = googletag.sizeMapping().addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_21fe3bcfb86a8660aba4e721ee9338f3 = googletag.sizeMapping().addSize([1200, 100], [970, 250]).addSize([768, 100], [600, 300]).addSize([320, 100], [300, 250]).build();AIAD_fcd45f981d570e35cee941b23edc69c7_6a6992272d511 = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a6992272d512').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a6992272d512'); });<\/script><\/p>\n<p>When completed, the Comtech\/Gilat combination would create an entity with nearly $1 billion in annual sales right from the start. Gilat\u2019s portfolio of TDMA-based satellite modems and solid-state amplifiers would allow Comtech to firmly establish itself in the In-Flight Connectivity (IFC) market, where Gilat had been scoring deals with Gogo, Honeywell, and Global Eagle. At the same time, the merger would also allow Comtech to expand its existing lead in the more familiar cruise ship sector. <\/p>\n<p>NSR senior analyst Lluc Palerm-Serra called combination a potentially dominant force in the industry. \u201cThis, combined with Comtech\u2019s success in November 2019 by reaching an agreement to acquire Canadian ground station company UHP Networks, could create a powerful, technological giant, with dominance along a long stretch of the satellite service supply chain,\u201d Palerm-Serra told Via Satellite shortly after the deal was announced.  <\/p>\n<p>Executives on both side of the deal were ecstatic. Comtech CEO Fred Kornberg called Gilat a \u201cperfect match.\u201d Gilat Chairman Dove Varra called the acquisition a \u201cwin-win for everyone,\u201d adding that both companies share aligned views of the future.<\/p>\n<p>And then, the COVID-19 pandemic happened.<\/p>\n<p>As if completing an acquisition under normal economic circumstances weren\u2019t difficult enough, the COVID-19 pandemic and the resulting economic fallout created an immediate need for cost-saving consolidation in an environment of high risk and even higher market uncertainty. This led to a sharp increase in M&amp;A premiums (which, according to Deloitte research, had already been increasing steadily since 2014) and a decrease in takeover success rates. According to data provided by nonprofit think tank, the Institute for Mergers, Acquisitions and Alliances (IMAA), the total number of successful telecommunications mergers dropped year-over-year from 712 in 2019, to 531 in 2020 (as of December 1, 2020). <\/p>\n<p>Pandemic travel restrictions grounded commercial airline flights, and with it, Gilat\u2019s IFC revenue. Warning signs quickly emerged that Comtech was experiencing buyer\u2019s remorse and that its relationship with Gilat was deteriorating. Lawyers representing Gilat shareholders started filing lawsuits claiming that Gilat was being undervalued in the transaction. Then, in July, Gilat CEO Yona Ovadia, who was supposed to stay on as CEO post-merger, suddenly resigned. <\/p>\n<p>What followed was a battle of press releases, with Comtech and Gilat accusing each other of avoiding contractual obligations under the takeover agreement, and trying to undermine each other\u2019s business.  Comtech finally filed suit against Gilat in mid-July, arguing that it suffered a Material Adverse Effect (MAE) due to the damage the COVID-19 pandemic caused the airline industry. In October, Comtech agreed to pay Gilat $70 million to get out of the deal.<\/p>\n<p>Comtech\u2019s failed acquisition of Gilat serves as an example of how the COVID-19 pandemic will change the way potential buyers value an acquisition. Unforeseen and uncontrollable events can change market conditions on a dime. Therefore, analysts agree that mergers will be more thoroughly scrutinized for many years, or at least until some sense of market stability has returned. In a world without COVID-19, a Comtech-Gilat combination would have had incredible influence on the expansion of mobile broadband and 5G wireless networks.<\/p>\n<h3>Case Study 3 \u2013 Bondholders Pull the Plug on a LEO\/GEO Juggernaut <\/h3>\n<p>Where does one even begin with telling the story of how OneWeb and Intelsat almost merged to create the largest and most diverse satellite operator in history? It\u2019s a story with more twists than a ball of yarn and one that ends with both companies heading in completely opposite directions.<\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a6992272d92f;googletag.cmd.push(function(){var AIMAP_29b58f13885ebf8ea6b032f958eb0748 = googletag.sizeMapping().addSize([992, 100], [[970, 90], [970, 250]]).addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_737ce075cc05dd766c8f8ea08f3faa73 = googletag.sizeMapping().addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_21fe3bcfb86a8660aba4e721ee9338f3 = googletag.sizeMapping().addSize([1200, 100], [970, 250]).addSize([768, 100], [600, 300]).addSize([320, 100], [300, 250]).build();AIAD_fcd45f981d570e35cee941b23edc69c7_6a6992272d92f = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a6992272d930').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a6992272d930'); });<\/script><\/p>\n<p>In June 2015, just a few months after OneWeb Founder Greg Wyler made his company\u2019s debut with a dramatic presentation at SATELLITE, Geostationary (GEO) giant Intelsat announced a new strategic alliance with the fledgling LEO operator. With promises to launch services from LEO in 2019, OneWeb successfully raised $500 million of funding from a group of investors that included Airbus Group, Bharti Enterprises, Grupo Salinas, Hughes, Qualcomm, Coca-Cola, Virgin Group, and Intelsat. Stephen Spengler, who had just been named Intelsat\u2019s new CEO, told Via Satellite he and outgoing CEO David McGlade started working with Wyler on an investment deal in 2014 after deciding not to explore a merge with then independent Medium-Earth Orbit (MEO) operator O3b Networks. <\/p>\n<p>\u201cWe saw the opportunity where there could be interoperability between OneWeb\u2019s LEO and Intelsat\u2019s GEO fleet, both operating in Ku-band, to hit verticals we were targeting for the future,\u201d Spengler explained.  <\/p>\n<p>It\u2019s important to remember that 2015 was a pivotal year for established satellite operators. A wave of New Space companies was amassing, backed by powerful venture capitalists determined to bring the Silicon Valley playbook to commercial space.  <\/p>\n<p>\u201cThe New Space movement brought a tremendous about of energy and speed to the industry,\u201d recalls Hogan Lovells\u2019 Kaufman. \u201cToday\u2019s small satellites are so much more powerful and cheaper than the big systems from several years ago.  Intelsat certainly knew back in 2015 that this was where things were headed. They were looking for the best way to stay ahead of this change, while carrying the amount of debt that they had, which limited their options.\u201d<\/p>\n<p>Two years later in March 2017, after watching OneWeb pull in a massive billion-dollar investment from Japan\u2019s SoftBank, Intelsat pulled the trigger on a definitive combination agreement in a share-for-share transaction. SoftBank agreed to buy voting and non-voting shares in the combined company and reduce approximately $3.6 billion of Intelsat\u2019s $15 billion debt pile \u2026 if bondholders approved.<\/p>\n<p>Spengler said he we would sell the deal to his bondholders by showing how it would significantly strengthen Intelsat\u2019s capital structure and accelerate its ability to invest in connected vehicle and advanced Internet of Things (IoT) applications. Unfortunately, the argument wouldn\u2019t be enough to satisfy a reportedly wide range of concerns among Intelsat\u2019s investors, who failed to approve the deal by a May 31 deadline. The merger was called off the next day. <\/p>\n<p>Kurt Riegelman, Intelsat\u2019s senior vice president of sales and marketing told Via Satellite at the time that the company\u2019s executives considered the merger itself as a Plan B. The original plan was for Intelsat to adopt some of OneWeb\u2019s capacity to supplement its own fleet. <\/p>\n<p>While disappointed, Spengler and Riegelman vowed that Intelsat would continue working with OneWeb as a strategic partner. This relationship would last less than two years. In September 2019, just days after OneWeb announced a strategic maritime market partnership with Iridium, Intelsat filed a lawsuit accusing OneWeb and Softbank Group of fraud, conspiracy, and breach of contract.   <\/p>\n<p>In the end, Intelsat\u2019s bad breakup may have helped the company dodge a bullet. OneWeb filed for Chapter 11 bankruptcy in March 2020, and is now under the ownership of the U.K. government and a Bharti Global-led group of investors. OneWeb has also been sued by launch company Virgin Orbit, which was part of its initial investment group.<\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a6992272dcef;googletag.cmd.push(function(){var AIMAP_29b58f13885ebf8ea6b032f958eb0748 = googletag.sizeMapping().addSize([992, 100], [[970, 90], [970, 250]]).addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_737ce075cc05dd766c8f8ea08f3faa73 = googletag.sizeMapping().addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_21fe3bcfb86a8660aba4e721ee9338f3 = googletag.sizeMapping().addSize([1200, 100], [970, 250]).addSize([768, 100], [600, 300]).addSize([320, 100], [300, 250]).build();AIAD_fcd45f981d570e35cee941b23edc69c7_6a6992272dcef = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a6992272dcf0').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a6992272dcf0'); });<\/script><\/p>\n<p>Intelsat also filed for Chapter 11 bankruptcy protection in May 2020, but unlike OneWeb, it did so to provide itself the means to the FCC\u2019s accelerated C-band spectrum clearing timeline and receive a $4.87 billion payout. \u201cIt\u2019s funny the way things turned out for Intelsat,\u201d remarks Kaufman. \u201cBy holding out and not merging with OneWeb, Intelsat will be able to put $4.87 billion of the FCC\u2019s money towards clearing debt, compared to the $3.6 billion that was estimated in the OneWeb\/SoftBank agreement. Despite all the headaches, Intelsat today finds itself in a much stronger financial position than OneWeb with a much brighter future. I can\u2019t say that things would have been better for anyone if, in a different place and time, that merger succeeded.\u201d <\/p>\n<h3>NSR\u2019s M&amp;A Evaluation Checklist<\/h3>\n<p>One of the satellite industry\u2019s leading specialized analysis firms, NSR has provided insight and commentary on some of the most meaningful M&amp;A transactions during the past 20 years. Via Satellite asked NSR President Chris Baugh to explain how he and his analysts calculate the likelihood that a satellite industry M&amp;A will succeed. Baugh shared the following list of what factors into the equation for success: <\/p>\n<p>\u2022\tWe look at the companies\u2019 complementarity, in both products and services and in the region where they offer that service so that 1+1 is greater than 2. <\/p>\n<p>\u2022\tWe analyze respective market share before and after the deal to see if it moves the needle overall and by region. <\/p>\n<p>\u2022\tWe assess if the M&amp;A offers the new combined company better footprint and distribution, as well as an opportunity to expand and grow their addressable market.<\/p>\n<p>\u2022\tWe factor in ease of integration of both companies\u2019 culture and customer sets.<\/p>\n<p>\u2022\tWe try to determine whether or not the M&amp;A enhances competitiveness, provides a clear roadmap via a compelling go-to-market strategy for the \u201cnew\u201d entity, and offers a unique value proposition and market position within and outside the industry. <\/p>\n<p>\u2022\tWe ask: \u201cDoes the M&amp;A provide any unique market advantages?\u201d And, \u201cHow would the companies\u2019 customers answer that question?\u201d<\/p>\n<p>\u2022\tWe also ask, \u201cDoes it seem obvious that the M&amp;A will succeed?\u201d<\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a6992272e0ac;googletag.cmd.push(function(){var AIMAP_29b58f13885ebf8ea6b032f958eb0748 = googletag.sizeMapping().addSize([992, 100], [[970, 90], [970, 250]]).addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_737ce075cc05dd766c8f8ea08f3faa73 = googletag.sizeMapping().addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_21fe3bcfb86a8660aba4e721ee9338f3 = googletag.sizeMapping().addSize([1200, 100], [970, 250]).addSize([768, 100], [600, 300]).addSize([320, 100], [300, 250]).build();AIAD_fcd45f981d570e35cee941b23edc69c7_6a6992272e0ac = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a6992272e0ad').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a6992272e0ad'); });<\/script><\/p>\n<p>After years of making these calculations, Baugh says he and his team have identified some common warning signs that an acquisition is likely to fail. Those signs are:<\/p>\n<p>\u2022\tWe find ourselves questioning the basic logic, timing, and cost of the M&amp;A.<\/p>\n<p>\u2022\tThe M&amp;A runs counter to trends we see in the market.<\/p>\n<p>\u2022\tWe see a path for both companies to achieve the same intended results through organic growth.<\/p>\n<p>\u2022\tThe M&amp;A feels desperate or reactionary, instead of focused on value-creation for the customer.<\/p>\n<p>\u2022\tThe M&amp;A combines two or more existing problems, with the potential to compound and exacerbate those problems. Successful M&amp;A more often involves two weak companies that produce one strong entity by eliminating a problem. <\/p>\n<p>\u2022\tThe M&amp;A will likely fail to deliver against synergies.<\/p>\n<p>\u2022\tWe can confidently predict excessive customer complaints and\/or churn post-merger.  <strong class=\"Annotation -strong\">VS<\/strong><\/p>\n<p>,<\/p>\n<h2 class=\"widget-title\">In This Issue<\/h2>\n<p>\t\t\t\t\t<!-- post id 405870:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img loading=\"lazy\" width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/wy2SLSPTligw1YO0Tqpj_VS_010121_DGTL_IFC_Interview-300x225.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/wy2SLSPTligw1YO0Tqpj_VS_010121_DGTL_IFC_Interview-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/wy2SLSPTligw1YO0Tqpj_VS_010121_DGTL_IFC_Interview-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/wy2SLSPTligw1YO0Tqpj_VS_010121_DGTL_IFC_Interview-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/wy2SLSPTligw1YO0Tqpj_VS_010121_DGTL_IFC_Interview.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tFree Internet is a Must: El Al\u2019s Tal Kalderon Talks IFC as Airlines Look to Rebound<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n\t\t\t\t\t\t<!-- post id 405867:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/O5aEGC6pQbyRVJjL8VKI_VS_010121_DGTL_Space_Investment-300x225.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/O5aEGC6pQbyRVJjL8VKI_VS_010121_DGTL_Space_Investment-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/O5aEGC6pQbyRVJjL8VKI_VS_010121_DGTL_Space_Investment-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/O5aEGC6pQbyRVJjL8VKI_VS_010121_DGTL_Space_Investment-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/O5aEGC6pQbyRVJjL8VKI_VS_010121_DGTL_Space_Investment.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tHow Space Startups Survived and Investors Thrived in a Year of Unknowns<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 405878:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"154\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/DkQnTdQcQoSujXyG0Ur4_Screen_Shot_2021-01-25_at_11.10.38_AM-300x154.png\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/DkQnTdQcQoSujXyG0Ur4_Screen_Shot_2021-01-25_at_11.10.38_AM-300x154.png 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/DkQnTdQcQoSujXyG0Ur4_Screen_Shot_2021-01-25_at_11.10.38_AM-800x412.png 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/DkQnTdQcQoSujXyG0Ur4_Screen_Shot_2021-01-25_at_11.10.38_AM-640x330.png 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/DkQnTdQcQoSujXyG0Ur4_Screen_Shot_2021-01-25_at_11.10.38_AM.png 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tIndustry Must Break the Logjam on Responsible Use of Space<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n\t\t\t\t\t\t<!-- post id 405864:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/tivRgFhHSrewwowrZmrX_VS_010121_DGTL_Supply_Chain-300x225.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/tivRgFhHSrewwowrZmrX_VS_010121_DGTL_Supply_Chain-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/tivRgFhHSrewwowrZmrX_VS_010121_DGTL_Supply_Chain-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/tivRgFhHSrewwowrZmrX_VS_010121_DGTL_Supply_Chain-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/tivRgFhHSrewwowrZmrX_VS_010121_DGTL_Supply_Chain.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tSatellite Companies Confront Supply Chain Challenges in the COVID Era<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 405874:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"154\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/ySFCts7jQMWNB2NGHrDP_Screen_Shot_2021-01-25_at_11.10.38_AM-300x154.png\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/ySFCts7jQMWNB2NGHrDP_Screen_Shot_2021-01-25_at_11.10.38_AM-300x154.png 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/ySFCts7jQMWNB2NGHrDP_Screen_Shot_2021-01-25_at_11.10.38_AM-800x412.png 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/ySFCts7jQMWNB2NGHrDP_Screen_Shot_2021-01-25_at_11.10.38_AM-640x330.png 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/ySFCts7jQMWNB2NGHrDP_Screen_Shot_2021-01-25_at_11.10.38_AM.png 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tThe Case for Small GEOs in the Coming LEO Space War<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n\t\t\t\t\t\t<!-- post id 405881:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"167\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/VN41XVq1QAaL6gOVrMo0_ED_Note-300x167.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/VN41XVq1QAaL6gOVrMo0_ED_Note-300x167.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/VN41XVq1QAaL6gOVrMo0_ED_Note-800x446.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/VN41XVq1QAaL6gOVrMo0_ED_Note-640x357.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/VN41XVq1QAaL6gOVrMo0_ED_Note.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tThe Year of Disruption Comes to an End. What will 2021 Hold?<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In commercial satellite industry circles, merger and acquisition (M&amp;A) deals that will \u201cchange everything\u201d are whispered about like a six-mile-wide asteroid tracking too close to the Earth. Will this be the one? The gossip is almost always more alluring than it is true. Yet, every time an executive like Eutelsat CEO Rodolphe Belmer goes on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":58430,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-58428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/58428"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=58428"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/58428\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/58430"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=58428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=58428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=58428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}