Intelsat CEO David McGlade Touts Benefits Of Panamsat Merger

Ten years ago, few would have dubbed a merger between Intelsat and Panamsat as "a marriage made in the heavens," but no one would have conceived of such a union. In today's commercial satellite environment, however, no combination of entities is impossible. Intelsat CEO David McGlade discussed the future of the two companies in rosy terms Oct. 20 at Washington Space Business Roundtable luncheon, in a talk dubbed "Intelsat and Panamsat: A Marriage Made in the Heavens." Responding to arguments whether private equity firms will allow Intelsat to purchase additional satellites, McGlade strongly affirmed Intelsat's ability to expand. Apollo Management, a 25- percent owner of Intelsat, not only has allowed Intelsat to grow but has driven Intelsat's "boldest move" ever: the merger with Panamsat. The merger still must garner approval from both the U.S. Federal Communications Commission and the Department of Justice. Many industry observers believe the merger will not be approved without some conditions, with some suggesting that the merged entity might have to divest some satellite assets (SN, Sept. 12). McGlade discounted competition concerns, because the two companies' combined fleets will complement each other, given that there is little overlap in the services Panamsat and Intelsat provide. Panamsat's fleet comprises spacecraft with more fixed landmass coverage, whereas Intelsat's satellites typically provide transoceanic links with more flexible beams. Panamsat has a "video heritage," with an "Americas focus," while Intelsat, on the other hand, has worked more prevalently in developing countries, he said. Ten years ago, few would have dubbed a merger between Intelsat and Panamsat as "a marriage made in the heavens," but no one would have conceived of such a union. In today's commercial satellite environment, however, no combination of entities is impossible. Intelsat CEO David McGlade discussed the future of the two companies in rosy terms Oct. 20 at Washington Space Business Roundtable luncheon, in a talk dubbed "Intelsat and Panamsat: A Marriage Made in the Heavens." Responding to arguments whether private equity firms will allow Intelsat to purchase additional satellites, McGlade strongly affirmed Intelsat's ability to expand. Apollo Management, a 25- percent owner of Intelsat, not only has allowed Intelsat to grow but has driven Intelsat's "boldest move" ever: the merger with Panamsat. The merger still must garner approval from both the U.S. Federal Commu