IntelSat up for grabs

IntelSat is looking for a new owner after receiving an offer of $6bn from private equity firm the Blackstone Group, according to the New York Times.

The world's largest commercial satellite operator has, reportedly, hired Credit Suisse to search for potential suitors.

A consortium of private equity companies paid $3.1bn for the company in 2004, so not a bad return on investment, though in 2006 IntelSat purchased PanAmSat for $3.2bn. IntelSat lost $369m in 2006, on revenue of $1.66bn, according to filings. It also has $11bn in long-term debt.

IntelSat was set up by a consortium of governments in 1964, but has only been a private company since 2001. Satellite communications is a big-money industry, and though these amounts seem high the demand for bandwidth never seems to decrease. ®