Eutelsat Stock Shock: France’s Power Grab Sends Shares Crashing 33% in 2025
- What Triggered Eutelsat’s Stock Collapse?
- France’s Silent Coup: Who Gains Control?
- The €4 Billion Gamble: Can Eutelsat Challenge Starlink?
- Retail Investors: Roadkill or Opportunists?
- FAQ: Your Burning Questions Answered
In a MOVE that stunned investors, Eutelsat’s stock plummeted 33% last week after announcing a massive rights issue priced 58% below market value. The French government is now set to control nearly 30% of the satellite operator, sidelining retail investors. With €4 billion earmarked to compete against SpaceX’s Starlink, can Eutelsat recover—or is this a sinking ship? Here’s the full breakdown.
What Triggered Eutelsat’s Stock Collapse?
The bombshell dropped on November 25, 2025: Eutelsat launched a €670 million rights offering at just €1.35 per share—a jaw-dropping 58% discount to the reference price. Existing shareholders saw their stakes diluted overnight, with non-participants facing a brutal reduction from 1% to 0.58% ownership. The terms? Harsh: 11 rights for 8 new shares, with subscriptions open until December 9. JPMorgan’s upgrade to "Neutral" (target: €1.90) felt like adding insult to injury, given the stock traded at €2.18. "It’s a bloodbath for small investors," remarked a BTCC market analyst.
France’s Silent Coup: Who Gains Control?
Post-capital hikes, the French state emerges as the dominant force with 29.65%, while Bharti Space (17.88%) and the UK government (10.89%) trail. This isn’t just business—it’s geopolitics. Europe’s desperate to counter Starlink’s 8,000-satellite dominance, and Eutelsat’s €1.5 billion financing package (including €828 million from a reserved capital increase) is its moonshot. "They’re playing chess while retail investors are stuck playing checkers," quipped a TradingView commentator.
| Key Players Post-Dilution | Stake |
|---|---|
| French State | 29.65% |
| Bharti Space | 17.88% |
| UK Government | 10.89% |
The €4 Billion Gamble: Can Eutelsat Challenge Starlink?
Eutelsat’s war chest targets three fronts: slashing net debt/EBITDA to 2.5x by 2026, launching 340 LEO satellites for OneWeb, and bankrolling the IRIS² project (€6.5 billion revenue projected over 12 years). But here’s the rub: SpaceX’s economies of scale are monstrous. Stifel analysts warn, "You can’t out-muscle Elon with patriotism alone." Bernstein’s Aleksander Peterc pins hopes on German involvement to bolster Eutelsat’s "European sovereignty" angle.
Retail Investors: Roadkill or Opportunists?
With shares down 75% from their €9 peak, the €2.18 level could be a floor—or a trap. Latin America and UAE operations might stabilize things, but the dilution trauma runs deep. "This isn’t investing; it’s involuntary charity," fumed a retail trader on X. Yet, some contrarians spy value: at 1.5x EV/Sales (per TradingView data), Eutelsat’s cheaper than SES SA.
FAQ: Your Burning Questions Answered
Why did Eutelsat’s stock drop 33%?
The rights issue’s 58% discount vaporized shareholder equity. Simple math: more shares + lower price = pain.
Is France nationalizing Eutelsat?
Not officially, but 29.65% control gives Paris veto power over strategic decisions.
Should I buy the dip?
This article does not constitute investment advice. That said, Starlink’s lead looks insurmountable without EU-wide subsidies.
