Should it materialize, such a deal would likely be struck at an EV of at least $9bn. This underscores the strategic significance of the move for Amazon, which aims to challenge Starlink, as GlobalStar's financial standing certainly does not justify such a valuation.
While the American group has tripled its revenue over the last decade, it has also posted losses in nine fiscal years over this period. Even the sole profitable year was only so by the narrowest of margins, having been bolstered by a one-off item - essentially making it negligible.
Nevertheless, funded through capital increases and equity, this expansion has continued without excessive reliance on debt - a positive point - resulting in a market capitalization equal to its enterprise value.
If Amazon were to acquire this low-earth orbit (LEO) specialist, it would be at multiples exceeding 30x revenue and 60x EBITDA. These figures are staggering and once again highlight the increasingly extreme disconnect between Europe and the United States.
As is well known, Eutelsat has not had a great financial trajectory: in June 2025, facing an urgent situation, we noted in "A Lifesaving Recapitalization for Eutelsat" that astute observers had long recognized the pressing need for action.
Indeed, while the group's outlook is highly favorable in fixed and mobile connectivity, the rapid erosion of its video broadcast business had been putting cash flows under severe pressure for some time.
Fortunately, Eutelsat pulled off a masterstroke by merging with the British firm OneWeb. This transaction enabled it to add a portfolio of LEO satellites on firmly allocated communication frequencies to its existing geostationary orbit (GEO) fleet.
However, now unable to self-finance, the company reached a dead-end in capitalizing on this success and securing its R&D investments. Circumstances therefore required it to initiated a new funding round at the dawn of this new cycle.
Less specialized, Eutelsat possesses a broader service portfolio than GlobalStar. The share of LEO services represents only 1/6 of its revenue. Its current enterprise value stands at €4bn - including €1.5bn in debt - representing a multiple of 3x revenue and 6x EBITDA.
Europe is not the United States, however, and it lacks an Amazon capable of playing the role of a strategic acquirer. Consequently, public sector funding has stepped in: together, the French and British states control 40% of Eutelsat's capital; India's Bharti Global holds 18%; and CMA CGM, whose anchor shareholder is close to the Elysee, holds 7.5%.
Eutelsat faced a further erosion of its operating profit and cash flow in 2025. A genuine opportunity for a re-rating would be to separate the satellite television activities from the connectivity business. There is no doubt that every investment bank in the market has been looking out for such a move for a long time.
This option had already been explored, notably through a sale of legacy activities to EQT. This has failed to materialize, because, according to market rumors, EQT refused to take on the group's debts and long-term obligations.
The French state, which is pursuing a sovereign rather than an economic logic here, would do well to be creative and ambitious in this instance. Even though Eutelsat claims to be funded until 2031, any further wait-and-see approach would put its finances at even greater risk.
