European company SES and U.S.-based Intelsat are in talks about a “possible combination” of the two satellite service industry players, the Luxembourg-headquartered satellite telecommunications provider confirmed Wednesday amid reports of the potential multi-billion transaction.
According to Bloomberg News, the companies are nearing a deal to establish an industry giant rivaling Elon Musk’s space business. The report cited people with knowledge of the matter saying that an agreement could be reached in the next few weeks and that the consolidated business could be valued at over $10 billion, including debt.
However, SES’ statement reads, “At this stage, there can be no certainty that a transaction would materialize.” An Intelsat representative also declined to comment.
SES offers video and data services to connect businesses, communities and government organizations. It has over 30 years of industry experience and employs more than 70 satellites in two different orbits.
Meanwhile, Intelsat delivers satellite telecom networks to customers worldwide. With 56 satellites, the company is among the largest providers of satellite capacity to the U.S. government and the maritime industry.