Europe's satellite ambitions took a hit Wednesday as SoftBank dumped roughly half its stake in French satellite operator Eutelsat, sending shares plummeting 7.2% in early trading. The move signals waning investor confidence in Europe's answer to Elon Musk's Starlink dominance, just months after the French government doubled down with a €1.35 billion investment to secure the continent's tech sovereignty.
The European space race just got messier. SoftBank quietly unloaded a massive chunk of its Eutelsat holdings Wednesday, triggering a 7.2% stock collapse that's raising serious questions about Europe's ability to compete with Elon Musk's satellite empire.
According to Reuters reporting, the Japanese investment giant sold 36 million rights corresponding to around 26 million shares - roughly half its position in the French satellite operator. The timing couldn't be worse for Europe's space ambitions, coming as the continent desperately tries to assert tech independence from both American and Chinese dominance.
Eutelsat has positioned itself as Europe's flagship challenger to SpaceX's Starlink constellation. The company owns OneWeb, which it merged with in 2023 specifically to take on Musk's satellite internet juggernaut. But the numbers tell a sobering story about just how far behind Europe really is.
While Eutelsat operates more than 600 satellites according to company data, SpaceX has over 6,750 Starlink satellites already beaming internet to customers worldwide. That's not just a gap - it's a chasm that keeps widening as Musk's team launches dozens of new satellites weekly.
The stock movement reflects this harsh reality. After soaring more than 600% in March as Europe scrambled to bolster tech sovereignty following reduced U.S. military support to Ukraine, Eutelsat shares have now crashed over 70% from those peaks. Wednesday's selloff extends that brutal correction.
What makes SoftBank's exit particularly stinging is the timing. Just five months ago, the French government led a massive €1.35 billion ($1.57 billion) investment round in Eutelsat, becoming the company's largest shareholder with roughly 30% ownership. The state backing was explicitly designed to ensure European control over critical satellite infrastructure.
But institutional investors like SoftBank clearly aren't buying the European space story. The Japanese firm's decision to cut and run suggests growing skepticism about ability to meaningfully compete with in the global satellite internet market.
