Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
A satellite dish in a terrestrial network of satellites in the Madeira office of Eutelsat. Photographer: /Bloomberg through Getty Images
Zed Jameson | Bloomberg through Getty Images
French satellite operator actions Eutelsat Almost 390% shot last week, and a possible change in tactics in European defense has been helping the demonstration.
The price of the company’s shares saw very volatile movements last week, up to 77% on Tuesday and in another 120% on Wednesday. From its closing price on February 28 to the end of last Friday, the shares have increased by 387%.
The Eutelsat actions continued to rise on Monday, jumping more than 22% at 1:00 pm local time in Paris.
What is behind the huge profits of the Eutelsat shares? CNBC runs for everything you need to know.
What is Eutelsat?
Eutelsat is a French company that produces satellites for data connectivity. The business sends its satellites to space using rockets of the ELON Musk Spacex tastes, displaying them both in low terrestrial orbit (Leo) and in geostationary orbit (GEO).
After an agreement to combine its operations with the British satellite firm Oneweb in 2023, Eutelsat became the third largest satellite operator in the world in terms of income. Compete with Starlink Satellite Internet Venture from Musk, a Spacex subsidiary.
Why do actions shoot?
Last week, reports arose that suggested that Eutelsat was in the race to potentially replace the musk Starlink in the accumulated Ukraine. For years, Starlink has offered Ukraine military satellite its Internet services to help with the war effort in the continuous invasion of Russia.
However, relations between the United States and Ukraine have recently been grated after the election of President Donald Trump. Musk serves as head of the recently urged government efficiency department, an advisory agency that helps the administration.
Last week, Trump stopped all military aid to Ukraine after a clash with the president of the country, Volodymyr Zelenskyy. The confrontation occurred after Trump changed the American politics about Ukraine and Russia by reopening conversations with Moscow.
In February, reports said that American negotiators had raised the possibility of reducing Ukraine access to Starlink if the two countries cannot successfully negotiate an agreement for the United States to ensure access to rare minerals of Ukraine.
On March 4, Eutelsat said he was in conversations with the European Union to provide additional access to the Internet to Ukraine.
The actions of the French company had already begun to emerge the previous day, thoroughly of the speculation that Eutelsat could serve as a replacement for Starlink in Ukraine if negotiations with the fracture of the United States.
Will Eutelsat replace Starlink?
For now, it is not entirely clear. The company is discussing an expansion of its services in Ukraine with the EU.
Eutselsat may have the scale to offer additional support to Ukraine in terms of satellite -based connectivity. The firm says that it currently has a fleet of 35 Geo Satellites, in addition to a constellation of Leo of more than 600 satellites.
During the weekend, Musk and the Secretary of State of the United States, Marco Rubio, had a dispute with Poland’s Foreign Minister in X, the social networks platform previously known as Twitter, which Musk has.
The technology billionaire said the “first line” of Ukraine would collapse if Starlink turned off.
In response, Poles Foreign Minister Radoslaw Sikorski said his country pays Starlink for services to Ukraine, which Warsaw has supported his battle against Moscow’s invasion since 2022. Sikorski added that Poland may have to look for alternative suppliers if Starlink proves to be a “little reliable supplier.”
Rubio played Sikorski’s claims, saying that “no one has threatened Ukraine of Starlink” and urging gratitude, while Musk called the Polish politician as a “small man.”
On Monday, Polish Prime Minister Donald Tusk defended his Foreign Minister, saying that Sikorski “calmly” explained the “reason for being Polish d’Etat to officials from another country.”
