OneWeb, the UK-based satellite internet service developer that has raised $3.4bn in funding from investors including telecommunications and internet group SoftBank, is considering filing for bankruptcy, Bloomberg has reported.
Founded in 2012, OneWeb is building up a constellation of some 650 satellites that will combine to provide high-speed internet coverage in remote areas for customers in areas like aviation and maritime transport.
The company launched a rocket on Saturday that increased the number of satellites it has in orbit to 74 but is facing a cash shortage related to significant operating costs and competition from rivals including SpaceX.
OneWeb is assessing its options, one of which is a bankruptcy filing, according to people with knowledge of the matter. The Telegraph had reported in November 2019 that it had been seeking $1bn in new funding, and that SoftBank had been expected to supply roughly half.
SoftBank joined mobile chipmaker Qualcomm, diversified conglomerate Grupo Salinas and the government of Rwanda to provide $1.25bn in funding for OneWeb in March 2019, but had written down roughly $460m of its total investment by August, according to The Telegraph.
The company had raised $1.2bn in a 2016 round led by $1bn from SoftBank and backed by Qualcomm, aerospace manufacturer Airbus, conglomerates Virgin Group and Bharti Enterprises, internet service provider Totalplay, beverage producer Coca-Cola Company and satellite services firms Intelsat and Hughes Network Systems.
Qualcomm, Airbus, Virgin Group, Bharti Enterprises, Intelsat, Hughes Network Systems and Totalplay, a subsidiary of Grupo Salinas, had supplied $500m for OneWeb in 2015, Qualcomm and Virgin’s contributions likely coming in January that year.
