OneWeb Files For Bankruptcy After Failing to Secure Softbank Funding

OneWeb has declared bankruptcy and laid off most of its staff yesterday as it couldn’t secure new investments, including from its major investor SoftBank (TYO:9984).

The satellite internet company has been working on a network to deliver worldwide broadband and it blamed the ongoing coronavirus crisis for failing to secure new funding.

Not long ago, OneWeb launched the 74th satellite in a constellation planned to total a minimum of 648 spaceships. The new network project was supposed to deliver high-bandwidth, low-latency internet connections to anywhere in the world, except Antarctica.

Before the pandemic disturbed the financial markets, the satellite internet startup held discussions with SoftBank to secure $2 billion in fresh funding.

As markets suffered a blow, the two companies could not reach an agreement over a potential bridge loan to give OneWeb time to find new investors. The discussions failed last Saturday, a few hours before OneWeb put over 30 “microsatellites” to the constellation,

The collapse in discussions with SoftBank comes as the Japanese conglomerate could also give up on the previously agreed $3 billion acquisition of stock in WeWork.

In case OneWeb fails to find new investors, the British government will take responsibility for the 74 spacecraft in orbit and will be responsible if the satellites collide.

Early OneWeb investors include Airbus, Intelsat, Bharti Enterprises, Coca Cola, Group Salinas, Hughes Network Systems, Virgin Group and the major supporter Softbank.