OneWeb on Friday filed for bankruptcy as major competitor SpaceX continues to push for broadband domination. The company has only accomplished 74 satellite launches out of the 648 planned orbiting routers.
OneWeb has already laid off most of its workers and is looking for acquisition opportunities. CNET notes that Facebook and Amazon could be potential buyers as both companies have expressed interest to launch their own satellite broadband services. As of writing, both companies haven't commented regarding a potential buyout.
In a statement, OneWeb said that it had been looking to secure financing, but in the process of doing so, the coronavirus pandemic struck and derailed negotiations.
"While the Company was close to obtaining financing, the process did not progress because of the financial impact and market turbulence related to the spread of COVID-19," said the company's statement.
OneWeb's financial constraints make SpaceX the only company to have a mega-constellation in low-Earth orbit. Elon Musk's Starlink broadband constellation continues to grow in size, and by the end of 2020, the private space agency should have over 1,000 satellites in space.
Previously known as WorldVu, OneWeb's founder Greg Wyler has a history of working with SpaceX's CEO. Both were working on a satellite internet project, but for some reason, Musk decided to launch the initiative on his own, which is why SpaceX now has project Starlink.
SpaceX is yet to announce the date of launch for its next batch of broadband satellites. Starlink 6 mission will continue in spite of the current health crisis. However, it did place several of its workers in quarantine earlier in March after it was found that an employee tested positive for COVID-19.
SpaceX employees at its California plant were informed of the news via a company-wide email, in which it was stated that one employee tested positive after a trip overseas. While the company had swiftly addressed the issue, Musk received flak for keeping his Tesla and SpaceX facilities open and allowing employees to work. That's in spite of the World Health Organization's recommendation to stay indoors except if essential activities have to be performed.
Musk was also heavily criticized for calling the panic over the pandemic "dumb" on social media. However, it appears he has realized the seriousness of the situation and launched efforts to curb the spread of the disease.
Through Tesla and SpaceX, Musk has since offered to make medical equipment such as masks and respirators to help fight the coronavirus.
