SoftBank Exits Eutelsat, Highlighting Europe’s Tech Sovereignty push
SoftBank has considerably reduced its stake in Eutelsat, a key player in Europe’s satellite internet market, sending shares of the French company tumbling nearly 8%. This move, following a Reuters report detailing the sale of 36 million rights (approximately 26 million shares – roughly half their holding), underscores a broader trend of SoftBank liquidating assets to fund its ambitious artificial intelligence investments.But it also shines a spotlight on the complex dynamics of tech sovereignty and the challenges facing Europe as it strives to compete with industry leader Starlink.
A Strategic Shift for SoftBank
This isn’t an isolated incident. SoftBank recently divested its entire stake in Nvidia, a U.S. chipmaker, to bolster its financial position for investments in OpenAI and other AI projects. Founder Masayoshi Son explicitly stated the Nvidia sale was necesary to fuel the next wave of AI innovation.
This “aggressive monetisation” across its portfolio, as described by Ookla analyst Luke Kehoe, signals a clear prioritization of AI within SoftBank’s investment strategy. You’re seeing a company recalibrate to focus on what it believes is the future of technology.
Eutelsat’s Position in a Changing Landscape
Eutelsat, owner of satellite internet provider OneWeb, merged with the latter in 2023 with the goal of directly challenging starlink’s dominance. However, the company has faced difficulties gaining notable traction in the U.S. market.
Here’s a quick comparison:
* Eutelsat: currently operates over 600 satellites.
* Starlink: boasts a constellation exceeding 6,750 satellites.
Despite this disparity, eutelsat remains a critical component of Europe’s ambitions for technological independence. The French state recognized this,leading a €1.35 billion ($1.57 billion) investment in June, becoming Eutelsat’s largest shareholder with approximately a 30% stake.
From tech Darling to Infrastructure Pillar
Eutelsat experienced a dramatic surge in early March, soaring over 600% as Europe sought to strengthen its tech capabilities following reduced U.S. military support for Ukraine.Though, the stock has as plummeted, losing more than 70% of its value.
This volatility reflects a shift in perception. As Kehoe points out, with government and European investors now providing the primary funding, Eutelsat is evolving from a high-growth story to a foundational element of Europe’s digital infrastructure.
Carving a Niche Beyond Direct competition
While Starlink maintains a significant advantage in retail broadband, Eutelsat is strategically focusing on specialized markets. These include:
* Government contracts
* Aviation connectivity
* backhaul solutions
* Emergency communication networks
The key question now is whether this higher-value,business-to-business (B2B) approach can generate attractive returns after the current investment phase. Moreover, Europe’s continued commitment to funding Eutelsat at the necessary scale will be crucial to closing the gap with Starlink.
The Bigger picture: Tech Sovereignty in Focus
SoftBank’s exit from Eutelsat isn’t simply a financial transaction. It’s a symptom of a larger geopolitical trend. Nations are increasingly prioritizing control over critical technologies, particularly in areas like communication and space infrastructure.
Europe’s investment in Eutelsat demonstrates a clear commitment to reducing reliance on foreign technology and fostering its own independent capabilities. Whether this strategy will succeed remains to be seen, but the stakes are undeniably high.
Sources:
* Reuters report on SoftBank’s Eutelsat stake sale.
* CNBC coverage of SoftBank’s Nvidia stake sale: https://www.cnbc.com/2025/11/11/softbank-sells-its-entire-stake-in-nvidia-for-5point83-billion.html
* CN
