Eutelsat’s stock plunged 7.2% after SoftBank sold 36 million rights, equivalent to about 26 million shares, amid challenges competing with Starlink. This selloff highlights ongoing struggles post-OneWeb merger, despite French government investment, as Bitcoin and European markets show resilience.
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SoftBank’s rapid selloff of Eutelsat shares triggered immediate market pressure.
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Eutelsat lags behind Starlink in satellite scale, with over 600 versus more than 6,750 satellites in orbit.
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European indices rose 0.32% on average, while Bitcoin rebounded following a weak session, per market data.
Discover why Eutelsat stock dropped sharply after SoftBank’s selloff and how Bitcoin’s rebound signals broader market strength. Stay informed on satellite tech shifts and investment opportunities in 2025.
What Caused the Eutelsat Stock Plunge After SoftBank’s Selloff?
Eutelsat stock plunge occurred on Wednesday when SoftBank offloaded 36 million rights, roughly 26 million shares, leading to a 7.2% drop in early trading. This action exacerbated Eutelsat’s challenges following its 2023 merger with OneWeb, aimed at rivaling Starlink but failing to close the competitive gap. Shares continued lower, reflecting investor concerns over the company’s market position despite recent government support.
How Does Eutelsat Compare to Starlink in the Satellite Industry?
Eutelsat operates over 600 satellites, positioning itself as Europe’s key player in satellite communications after merging with OneWeb in 2023. In contrast, Starlink boasts more than 6,750 satellites, dominating low-Earth orbit broadband services under Elon Musk’s SpaceX. This disparity in scale underscores Eutelsat’s uphill battle, as reported by industry trackers. Expert analysis from satellite sector observers notes that while Eutelsat benefits from established geostationary assets, Starlink’s rapid deployment and user base give it a clear edge in global coverage and innovation speed. Short sentences highlight the key issue: Eutelsat’s merger hasn’t yet translated to parity. Data from orbital registries confirms Starlink’s lead, with launches continuing unabated into 2025.
Earlier in the year, Eutelsat experienced a surge, with shares rising over 600% in early March 2025. This boost came amid Europe’s push to bolster tech infrastructure, particularly after shifts in U.S. military aid to Ukraine, prompting increased investments in independent capabilities. However, that rally proved short-lived. Since those peaks, Eutelsat’s stock has declined more than 70%, wiping out most gains and raising doubts about its strategic viability. The French government intervened in June with a €1.35 billion investment round, approximately $1.57 billion, securing a nearly 30% stake and providing crucial capital. Yet, this lifeline has not altered Eutelsat’s trailing position against competitors like Starlink.
SoftBank’s decision to sell adds further pressure. The Japanese conglomerate, a prior investor, executed the sale without public commentary, using a rights issue structure that implies urgency to exit amid potential dilution. Market dynamics suggest this could invite additional selling, as institutional investors often follow suit in volatile sectors. Sources like Bloomberg and Reuters, cited in financial reports, indicate such moves signal waning confidence in Eutelsat’s growth trajectory within the burgeoning satellite internet space.
Frequently Asked Questions
What Impact Did the French Government’s Investment Have on Eutelsat?
The French-led €1.35 billion investment in June 2025 made Paris Eutelsat’s largest shareholder at nearly 30%, injecting vital funds for operations and expansion post-OneWeb merger. It stabilized finances but failed to boost stock performance significantly against rivals like Starlink, with shares still down over 70% from March highs.
Why Is Bitcoin Rebounding Amid European Market Gains?
Bitcoin’s rebound follows its worst session since March, aligning with positive U.S. and Asian market closes. As investors anticipate an 89% chance of a Federal Reserve rate cut on December 10, based on trading data, risk assets like Bitcoin gain traction. This natural uptick reflects cooling inflation and steady job market signals ahead of the ADP payrolls report.
Beyond Eutelsat’s woes, broader European markets demonstrated resilience on the same day. The Stoxx Europe 600 index advanced 0.32% to 577.50, buoyed by gains across most sectors. France’s CAC 40 edged up 0.27% to 8,096.74, while Italy’s FTSE MIB saw a stronger 0.76% increase to 43,683.47. Germany’s DAX climbed 0.32% to 23,786.81, and Spain’s IBEX 35 surged 1.50% to 16,721.00. The UK’s FTSE 100 bucked the trend slightly, dipping 0.14% to 9,687.74.
These movements followed a recovery in U.S. equities on Tuesday, where Nvidia’s tech rally lifted the Nasdaq, and the S&P 500 and Dow Jones recovered late losses. Asian markets traded solidly overnight, setting a constructive tone. Bitcoin’s parallel rebound underscores interconnected global sentiment, with cryptocurrency often mirroring equity trends during periods of monetary policy anticipation.
Looking ahead, market participants are focused on the Federal Reserve’s December 10 decision. Expectations for a rate cut have risen sharply to 89% from mid-November levels, driven by evidence of faster-than-anticipated inflation moderation. The upcoming ADP private payrolls report for November, due shortly, is forecasted to indicate a stable job market. Such data could reinforce the case for policy easing, potentially supporting assets like Bitcoin and influencing satellite tech investments indirectly through improved liquidity.
In the satellite industry, Eutelsat’s challenges highlight broader themes in Europe’s tech sovereignty efforts. While the OneWeb merger aimed to counter Starlink’s dominance, execution hurdles persist. Analysts from firms like McKinsey emphasize the need for accelerated innovation in low-Earth orbit tech to bridge the gap. Eutelsat’s over 600 satellites provide strong geostationary services for broadcasting and telecom, but Starlink’s constellation excels in high-speed internet for remote areas, serving millions worldwide.
The SoftBank selloff, involving 36 million rights convertible to shares, was priced at a discount, accelerating the downturn. Trading data from CNBC showed the initial 7.2% drop, with shares remaining under pressure. This event comes at a sensitive time, as Eutelsat navigates post-merger integration and seeks new partnerships. The French government’s stake offers strategic alignment with national interests, potentially opening doors to EU funding for space projects.
Bitcoin’s recovery, meanwhile, ties into macroeconomic tailwinds. After a sharp decline the previous day—its worst since March— the cryptocurrency climbed as U.S. indices turned positive. This resilience in digital assets often precedes broader risk-on environments, especially with Fed decisions looming. Traders monitoring tools like the CME FedWatch now price in aggressive easing, which could funnel capital into both traditional and alternative investments.
European indices’ gains reflect confidence in regional economic indicators. The Stoxx 600’s 0.32% rise masked sector variances but overall pointed to optimism. Tech and financial stocks led advances, while defensive sectors like utilities lagged slightly. Italy and Spain’s outperformance suggests localized strengths in industrial and energy segments, per Eurostat data. The FTSE 100’s minor decline was attributed to currency fluctuations and bank-specific news.
For investors eyeing satellite and crypto intersections, Eutelsat’s saga serves as a cautionary tale. While Bitcoin benefits from macro flows, traditional tech firms must execute flawlessly to compete globally. Ongoing ADP data will provide the next clarity on U.S. employment, influencing rate paths and asset correlations.
Key Takeaways
- Eutelsat’s merger with OneWeb: Aimed to rival Starlink but hasn’t closed the satellite scale gap, with Eutelsat at 600+ versus Starlink’s 6,750+.
- French government intervention: €1.35 billion investment secured 30% stake, providing capital but not reversing 70% stock decline from March 2025 highs.
- Market resilience including Bitcoin: European indices up 0.32% average, Bitcoin rebounding ahead of Fed rate decision and ADP report.
Conclusion
The Eutelsat stock plunge following SoftBank’s selloff of 36 million rights underscores persistent challenges in Europe’s satellite sector, even with the OneWeb merger and French backing. As Bitcoin rebound and European indices signal broader market strength, investors should monitor Fed policy shifts for impacts on tech and crypto assets. Looking forward, strategic adaptations could position Eutelsat for recovery—stay tuned for updates on global investment trends.
