Europe forms major space venture to rival Starlink

Airbus, Leonardo, and Thales announced Thursday they will merge their satellite and space operations to create a leading European space player, aiming to compete with Elon Musk’s Starlink. 

The joint venture will focus on space infrastructure and services, excluding launchers, and is set to employ 25,000 people across Europe. It is projected to generate mid-triple-digit million euros in annual operating synergies within five years.

Airbus will hold a 35% stake, and contribute its Space Systems and Space Digital units. Leonardo and Thales will each hold 32.5%, bringing in their entire space divisions and stakes in Thales Alenia Space and Telespazio. 

The new company will offer a comprehensive portfolio of complementary technologies, from satellites to end-to-end services, and serve as a trusted partner for national sovereign space programs.

The announcement boosted European defense stocks: Leonardo rose 1.8%, Thales 0.6%, and Airbus 0.2%. 

Analysts say the move consolidates Europe’s space capabilities, strengthens its technological sovereignty, and signals a long-awaited effort to rival Starlink globally.