A satellite dish in a satellite ground network at the Eutelsat Madeira office. Photographer: / Bloomberg via Getty Images
Zed Jameson | Bloomberg via Getty Images
Actions of the French satellite operator Eutelsat Added nearly 390% last week – and a potential change in Tack in European defense helped the rally.
The company’s equity price experienced very volatile movements last week, up 77% Tuesday and 120% more on Wednesday. From its closing price of February 28 at the end last Friday, the shares increased by 387%.
Eutelsat’s actions continued to climb on Monday, jumping more than 22% at 1:00 p.m. local time in Paris.
What about the huge gains in the Eutelsat actions course? CNBC goes through everything you need to know.
What is Eutelsat?
Eutelsat is a French company that produces satellites for data connectivity. The company sends its satellites to space using rockets from Elon Musk SpaceX, in deployment both in low terrestrial orbit (LEO) and geostationary orbit (GEO).
After an agreement to combine its operations with the British satellite company Oneweb in 2023, Eutelsat became the third largest satellite operator in the world in terms of income. He competes with Musk’s satellite satellite satellite satellite, a subsidiary of SpaceX.
Why are the actions soaring?
Last week, reports surfaced by suggesting that Eutelsat was in the running to potentially replace Starlink from Musk in besieged Ukraine. For years, Starlink has offered Ukraine military satellite its Internet services to help the war effort in the middle of the Russian invasion.
However, relations between the United States and Ukraine have accelerated recently following the election of President Donald Trump. Musk is at the head of the newly educated government’s efficiency department, an advisory body helping the administration.
Last week, Trump interrupted all the military aid in Ukraine following a confrontation with the president of the country Volodymyr Zelenskyy. The confrontation occurred after Trump moved American policy on Ukraine and Russia to reopen talks with Moscow.
In February, reports indicated that American negotiators had increased the possibility of reducing Ukraine access to Starlink if the two countries are unable to successfully negotiate an agreement for the United States to obtain access to the rare earth minerals of Ukraine.
On March 4, Eutelsat said he was in talks with the European Union to provide additional Internet access to Ukraine.
The actions of the French company had already started to increase the day before, at the rear of speculation according to which Eutelsat could replace the starred bond in Ukraine if the negotiations with the American fracture.
Will Eutelsat replace Starlink?
For the moment, it is not entirely clear. The company discusses an expansion of its services in Ukraine with the EU.
EUTSELSAT undoubtedly has the scale to provide additional support to Ukraine in terms of satellite connectivity. The company says it currently has a fleet of 35 Geo satellites, in addition to a lion constellation of more than 600 satellites.
During the weekend, Musk and US Secretary of State Marco Rubio had a spat with the Minister of Foreign Affairs of Poland on X, the social media platform formerly known as Twitter, which Musk has.
The technological billionaire said that “the whole front line” of Ukraine would collapse if he should deactivate Starlink.
In response, Polish Foreign Minister Radoslaw, Sikorski, said his country pays Starlink for services to Ukraine, which Warsaw has supported in his battle against the invasion of Moscow since 2022. Sikorski added that Poland could have to seek alternative suppliers if Starlink turns out to be a “unreliable supplier”.
Rubio challenged Sikorski’s claims, saying that “no one threatened to cut Ukraine from Starlink” and urging gratitude – while Musk has nicknamed the Polish politician a “little man”.
Polish Prime Minister Donald Tusk defended his Minister of Foreign Affairs on Monday, claiming that Sikorski “calmly” explained the “Polish reason for officials of another country”.
