OneWeb raises $400m in new funding from SoftBank and Hughes

OneWeb's latest rocket launch 

Credit: AFP

OneWeb, the satellite maker rescued by the UK Government, has secured a $400m (£292m) investment in a return swoop by previous shareholder SoftBank.

The satellite maker, which is hoping to launch 648 low orbit satellites to blanket the world in broadband, confirmed the funding on Friday.

Around $50m has been committed by Hughes, a US aerospace company. The remainder is fresh equity from Japan’s SoftBank, previously the largest investor in OneWeb before it collapsed in March last year.

It once again sees Masayoshi Son, SoftBank’s enigmatic chief executive, building his stake in OneWeb, despite pulling the plug on the company last year. 

The Telegraph reported last year that SoftBank would be keeping a stake in OneWeb as it emerged from bankruptcy.

Last March, OneWeb had been close to agreeing new financing from SoftBank, but the deal fell through as the coronavirus crisis struck and SoftBank’s share price tumbled. 

OneWeb filed for bankruptcy protection, but was rescued by a consortium of the British government and India’s Bharti, the telecoms conglomerate led by Sunil Mittal.  

The new investment comes after OneWeb successfully launched 36 satellites in December, a return to its launch schedule after a nine month delay.

Neil Masterson, OneWeb chief executive, said: "We have made rapid progress to re-start the business since emerging from Chapter 11 in November. We welcome the investments by SoftBank and Hughes as further proof of progress towards delivering our goal.”

Kwasi Kwarteng, the Business Secretary, said: "Today’s investment brings the company one step closer to delivering its mission to provide global broadband connectivity for people, businesses and governments."

It is part of a space race to cover the earth in telecoms satellites. These satellites will provide broadband internet speeds to rural locations that are impractical for fibre developers to reach.

OneWeb’s satellites are currently developed in Florida by Airbus, although there have been calls to relocate future manufacturing to the UK. 

Last week, the Telegraph reported that Elon Musk’s Starlink, a rival venture, had started offering its home broadband service in the UK.