U.S. satellite giant Viasat’s $7.3 billion takeover of UK rival Inmarsat faces in-depth competition probe
The offices of satellite operator Inmarsat in central London.
Leon Neal | AFP | Getty Images
The U.K.’s competition regulator launched an in-depth probe into American satellite internet company Viasat’s $7.3 billion deal to buy British rival Inmarsat.
The Competition and Markets Authority on Friday referred the takeover for a so-called “Phase 2” competition investigation, concerned it would make it harder for competitors such as Elon Musk’s SpaceX, U.K. firm OneWeb and Canadian operator Telesat to do business with the aviation sector.
Specifically, the CMA is worried the deal would lead to higher prices for onboard Wi-Fi on plane flights.
The watchdog has said Viasat and Inmarsat “compete closely in the aviation sector, particularly for the supply of onboard wifi for passenger use.” While these in-flight connectivity (IFC) services are only offered by a handful of players currently, the market “is expected to grow significantly in coming years,” the CMA says.
Such a move “could face higher prices and be offered lower quality connectivity solutions, ultimately affecting the cost, quality and availability of services for airline passengers,” it added.
The regulator said its initial investigation found it can be very difficult for airlines to switch satellite providers once they have installed network equipment. The merger of Viasat and Inmarsat could therefore “lock in a large part of the customer base” before rival suppliers emerge.
Combined, Intelsat and rival Panasonic represent more than 75% of the long-haul IFC market, the regulator stated.
“This is an evolving market, but the merging companies are currently 2 of the key players – and it remains uncertain whether the next generation of satellite operators will be able to compete against them effectively,” said Colin Raftery, senior director of the CMA.
“Ultimately, airlines could be faced with a worse deal because of this merger, which could have knock-on effects for UK consumers as in-flight connectivity becomes more widespread.”
In a statement Friday, Viasat and Inmarsat said they were “confident that the transaction will increase the availability of more affordable, faster, and more reliable IFC [in-flight connectivity] globally to operators, airlines, and passengers.”
The two companies will “actively participate” in the CMA’s investigation and “determine and communicate any updated expectations for the deal closing as engagement with the CMA continues,” they said.
Viasat CEO and Executive Chairman Mark Dankberg said the deal would increase the availability of in-flight connectivity services globally. “Industry analysts anticipate that an already highly competitive IFC market will become even more competitive with the entrance of new, heavily financed LEO competitors,” he added.
Inmarsat “faces intense competition every day in providing in-flight connectivity,” said Rajeev Suri, CEO of Inmarsat.
“There is good reason to expect that intensity to increase given the power of well-funded new companies entering the sector. In the face of these changing market dynamics, the UK has much to gain by the presence of a strong satellite communications company, positioned to strengthen the country’s position in the critical space sector, while supporting its national defence and growing jobs and investment.”
A range of companies from Elon Musk’s SpaceX to Amazon, which owns the Kuiper satellite constellation, are racing to launch satellites into space to beam internet to people in rural and hard-to-reach areas to connect to the internet. It has become a key focus for the U.K. government, which is invested in domestic satellite firm OneWeb.
But it is hard for companies to succeed in the market as it requires lots of capital and manpower. In 2020, OneWeb collapsed into bankruptcy after burning through billions of dollars in investors including Japan’s SoftBank. The company was rescued later that year with the help of the U.K. government, which kicked in $500 million as part of a bailout package.
Britain and the European Union have also become more aggressive in seeking to defend their “digital sovereignty” — the idea that countries shouldn’t lose control of strategic technologies such as semiconductors, artificial intelligence and cloud computing. In the U.K., a bill known as the National Security and Investment Act allows governments to intervene in foreign takeovers if they feel their is a national security risk.
American chipmaker Nvidia’s attempt to take over U.K. chip designer Arm unraveled after a national security review from the government and a federal lawsuit from the FCC. Meanwhile, the sale of Welsh semiconductor firm Newport Wafer Fab to a Chinese-owned company is the subject of a U.K. security probe.
In Viasat and Inmarsat’s case, the deal has already been approved on national security grounds in the U.K. and U.S.
VCG | Visual China Group | Getty Images
Google on Wednesday said it will sign the European Union’s guidelines on artificial intelligence, which Meta previously rebuffed due to concerns they could stifle innovation.
In a blog post, Google said it planned to sign the code in the hope that it would promote European citizens’ access to advanced new AI tools, as they become available.
Google’s endorsement comes after Meta recently said it would refuse to sign the code over concerns that it could constrain European AI innovation.
“Prompt and widespread deployment is important,” Kent Walker, president of global affairs of Google, said in the post, adding that embracing AI could boost Europe’s economy by 1.4 trillion euros ($1.62 trillion) annually by 2034.
The European Commission, which is the executive body of the EU, published a final iteration of its code of practice for general-purpose AI models, leaving it up to companies to decide if they want to sign.
The guidelines lay out how to meet the requirements of the EU AI Act, a landmark law overseeing the technology, when it comes to transparency, safety, and security.
However, Google also flagged fears over the potential for the guidelines to slow technological advances around AI.
“We remain concerned that the AI Act and Code risk slowing Europe’s development and deployment of AI,” Kent Walker, president of global affairs of Google, said in the post Wednesday.
“In particular, departures from EU copyright law, steps that slow approvals, or requirements that expose trade secrets could chill European model development and deployment, harming Europe’s competitiveness.”
Earlier this month, Meta declined to sign the EU AI code of practice, calling it an overreach that would “stunt” the industry.
“Europe is heading down the wrong path on AI,” Joel Kaplan, Meta’s global affairs chief, wrote in a LinkedIn post at the time. “This code introduces a number of legal uncertainties for model developers, as well as measures which go far beyond the scope of the AI Act.”
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CyberArk’s stock jumps on report Palo Alto Networks in talks to buy company for over $20 billion
Nikesh Arora, CEO of Palo Alto Networks, looks on during the closing bell at the Nasdaq Market in New York City, U.S., March 25, 2025.
Jeenah Moon | Reuters
CyberArk shares soared as much as 18% on Tuesday after The Wall Street Journal reported that cybersecurity provider Palo Alto Networks has held discussions to buy the identity management software maker for over $20 billion.
Cloud security is becoming an increasingly critical piece of the enterprise tech stack, especially as rapid advancements in artificial intelligence bring with them a whole new set of threats, and as ransomware attacks become more commonplace.
Founded in 2005, Palo Alto Networks has emerged in recent years as a consolidator in the cybersecurity industry and has grown into the biggest player in the space by market cap, with a valuation of over $130 billion. CEO Nikesh Arora, who was appointed to the job in 2018, has been on a spending spree, snapping up Protect AI in a deal that closed in July, and in 2023 buying Talon Cyber Security, Dig Security and Zycada Networks.
But CyberArk would represent by far Arora’s biggest bet yet. The Israeli company, which went public in 2014, provides technology that helps companies streamline the process of logging on to applications for employees.
CyberArk faces competition from Microsoft, Okta and IBM‘s HashiCorp. Another rival, SailPoint, returned to the public markets in February.
With Tuesday’s rally, CyberArk shares climbed to a record, surpassing their prior all-time high reached in February. The stock is up 29% this year, pushing the company’s market cap to almost $21 billion, after jumping 52% in 2024. Palo Alto shares, meanwhile, slid 3.5% on the report and are now up about 9% for the year.
Representatives from Palo Alto Networks and CyberArk declined to comment.
During the first quarter, CyberArk generated around $11.5 million in net income on around $318 million in revenue, which was up 43% from a year earlier.
It’s been an active stretch for big deals in the cyber market. Google said in March that it was spending $32 billion on Wiz, its largest acquisition on record by far, and a purchase intended to bolster its cloud business with greater AI security technology.
Networking giant Cisco also made its biggest deal ever in the security space, buying Splunk in 2023 for $28 billion. Splunk’s technology helps businesses monitor and analyze their data to minimize the risk of hacks and resolve technical issues faster.
— CNBC’s Ari Levy contributed to this report
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