Oneweb files for bankruptcy after Softbank funding talks fall through
Space broadband firm Oneweb has filed for bankruptcy and laid off most of its staff after failing to drum up additional funding from investors including largest shareholder Softbank.
The London-based startup, which was building a network of satellites to provide global broadband coverage, on Friday said it had filed for Chapter 11 bankruptcy protection in New York and will pursue a sale of the business.
Oneweb has been in discussions about additional funding since the beginning of the year, but said market turbulence caused by the coronavirus outbreak had derailed efforts.
“Our current situation is a consequence of the economic impact of the Covid-19 crisis,” said chief executive Adrian Steckel.
“We remain convinced of the social and economic value of our mission to connect everyone everywhere.”
Oneweb just last week launched an additional 34 satellites into orbit, taking the total number of satellites in its constellation to 74.
The firm had raised $3.4bn (£2.7bn) from investors including Softbank, Airbus, Qualcomm and Virgin Group for its project, which aimed to provide high-speed broadband connections across the globe, including in remote rural areas and at sea.
But Oneweb battled sky-high costs linked to the project and is thought to have been seeking at least an extra $2bn in funding.
“So many people have dedicated so much energy, effort, and passion to this company and our mission,” Steckel said.
“Our hope is that this process will allow us to carve a path forward that leads to the completion of our mission, building on the years of effort and the billions of invested capital.”
The collapse will spark concerns for a string of other companies plotting space-based broadband services.
Tesla boss Elon Musk is developing his Starlink constellation, which would consist of up to 1m satellites, while earlier this month Vodafone invested $25m in the Texas-based Space Mobile project.