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Britain gives its backing to OneWeb satellite bid

The likeliest purchaser of the bankrupt OneWeb broadband satellite venture isn’t Amazon, but a consortium backed by the British government. That’s according to satellite industry watchers cited by Space Intel Report and The Financial Times.

Amazon, which is working on its own Project Kuiper satellite constellation, was said to be among the entities that expressed interest in bidding on OneWeb’s assets after the London-based satellite concern declared Chapter 11 bankruptcy in March. OneWeb said the market disruption caused by the coronavirus pandemic spoiled arrangements to win further financial support from SoftBank group, one of its biggest backers, forcing the move to seek financial protection.

OneWeb’s assets were put up for sale under the supervision of U.S. bankruptcy court in New York. Bids were due to be opened today for an initial round of assessment. If there’s no clear winner in the eyes of the judge and OneWeb’s creditors, an auction would be held on July 2.

The Financial Times quoted its sources as saying the British government was willing to put up about $617 million (£500 million) as part of a wider private-sector consortium bid. If the bid is successful, the government could end up owning more than 20% of OneWeb, according to The Financial Times.

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By Alan Boyle

Mastermind of Cosmic Log, contributing editor at GeekWire, author of "The Case for Pluto: How a Little Planet Made a Big Difference," president of the Council for the Advancement of Science Writing. Check out "About Alan Boyle" for more fun facts.

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