The takeover papers date back to mid-July 2021, which Swarm is only now adding with the US regulator FCC (Federal Communications Commission). Neither Swarm nor SpaceX have yet found it necessary to communicate the takeover. It is definitely worth reporting, even if there is no information on the conditions.
After all, an operator of a global network of small satellites takes over another operator of a global network of small satellites. In addition to financial strength, the companies only differ in terms of target group.
SpaceX vs. Swarm: Only the target group and the dimension are different
After initial problems with the regulatory authorities that lasted for years, Swarm can now count 120 satellites in orbit, only 600 were planned in total. The company now has permits for all countries for which they have been applied for, including Germany. However, Swarm was initially launched exclusively in the USA. Until recently, the expansion of the necessary ground stations was in full swing.
How the takeover by SpaceX will affect the future strategy of the company cannot yet be assessed. For the time being, Swarm will continue to operate as a subunit of SpaceX in its entirety as before. Since the company had only around 30 employees so far, SpaceX is more of a departmental size. The capitalization should not have caused any difficulties for SpaceX either. Swarm had only raised $ 35 million in venture capital in its relatively short history.
What are the benefits?
According to information from Spacenews, Swarm expects the takeover to offer greater financial opportunities to compete with other providers in the Smallsat business. According to an FCC filing, SpaceX seems to be primarily concerned with Swarm’s licenses, patents and other intellectual property and less with its operational business.
Thinking ahead, SpaceX could use Swarm’s existing technology for the integration of IoT devices for use the installation in your own satellites. Since a much smaller number of satellites would apparently be sufficient for the IoT (Internet of Things), SpaceX could integrate the technology into some of the future batches of its own cubesats and play it in orbit. Not every Starlink satellite would have to get the technology and SpaceX had recently announced that it would also bring its Internet access to trucks, ships and planes.
