Intelsat has had a terrible week, with its share price tumbling 5.5 per cent on September 22, but having collapsed from $9.83 to just $7.91 over the past five trading days. Intelsat shares are down by 54 per cent since the start of the year.
Now the Financial Times is reporting that the company is looking to sell some key assets, and Eutelsat and John Malone-backed Liberty Media are said to be examining the possibilities. The FT says SES or Canada’s Telesat could also be interested parties.
Intelsat is burdened by a massive $14 billion in debt, the highest in the industry by far.
The sell-off possibilities could include its ‘Intelsat Americas’ media and cable distribution business which relays key US channels such as HBO (and its fleet of ‘Galaxy’ satellites). Also mentioned as a possibility is the sale of its valuable governmental/military ‘government solutions’ business which supplies bandwidth to the US armed forces around the world.
Intelsat is controlled by two private equity companies, BC Partners and Silver Lake, which acquired Intelsat back in 2007 when the business was already carrying some $11 billion in debt.