Luxembourg-based Societe Europeénne des Satellites is set to sign a landmark deal with General Electric Company to acquire its satellite broadcasting arm for $5 billion in cash and stock.

Once inked, the deal will realise SES’ longstanding ambition to enter the US satellite market. The company is a major force in European satellite broadcasting with fast expanding businesses in Asia and Latin America.

The Luxembourgois’ long-term strategy is to combine satellite and ground-based capabilities, with the intention of storing quality video and internet files as close as possible to the end user. "We want to be the provider of video-rich content," says Dean Olmstead, SES's senior US representative.

A done deal would see SES adding General Electric’s fleet of satellites to its own, creating a combined armada of twenty-eight circling the globe.

News source: Wall Street Journal