Intelsat-SES merger talks called off

Merger talks between McLean-based satellite operator Intelsat and Luxembourg-based competitor SES S.A. have been called off, SES said in a post on its website Thursday. The merger was anticipated to have created a $10 billion global business.

SES confirmed March 29 that the companies had “engaged in discussions” about combining, but said at the time, “There can be no certainty that a transaction would materialize.”

CNBC reported Thursday that Intelsat ended the talks because of differences over the two companies’ business priorities, according to a person familiar with the situation, but Intelsat declined to comment on the record, telling the news outlet that the company regularly engages in “strategic conversations with potential partners” but doesn’t disclose the “content or outcome of those discussions.”

Intelsat named several new executives last year, including CEO David Wajsgras, after the company announced in February 2022 that it had emerged from its financial restructuring nearly two years after filing for Chapter 11 bankruptcy.

Both SES and Intelsat are competing in a high-pressure environment, with Elon Musk’s Starlink satellite internet business, part of SpaceX, having gained more than 1.5 million subscribers in less than three years.