Based out of London, OneWeb builds a space-based global communications network that delivers high-speed, low latency internet access everywhere. As per the latest news coming in, the company has filed for bankruptcy and intends to sell its business.
In their official blog, OneWeb posted:
“OneWeb and certain of its controlled affiliates have voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York. The company intends to use these proceedings to pursue a sale of its business in order to maximize the value of the company.”
Failed to raise funds!
According to the Financial Times, OneWeb has laid off 500 of its employees after failing to raise somewhere around $2 billion from Softbank for its planned commercial launch in 2021. Notably, OneWeb had been engaged in advanced negotiations regarding the investment that would fully fund the company through its deployment and commercial launch.
While the London-based company was close to obtaining financing, the process did not progress because of the financial impact and market turbulence related to the spread of COVID-19.