HNA Group’s proposed $416 million investment in Global Eagle Entertainment has collapsed after the two companies failed to get U.S. regulatory approval.
HNA’s Beijing Shareco Technologies Co. planned to invest in Los Angeles-based Global Eagle Entertainment, but the deal was terminated after failing to obtain the go-ahead from the Committee on Foreign Investment in the United States.
The investment was originally announced in November.
The main purpose of the joint venture was to enable Global Eagle to provide inflight entertainment and connectivity services to HNA-owned airlines.
The joint venture would have granted Global Eagle the ability to sell antennas, network services and other equipment to HNA aircraft on an exclusive basis. HNA Group had more than 1,250 aircraft at the end of 2016.
Global Eagle said it will still be able to serve three of the 14 airlines under the HNA Group.
Shareco and Global Eagle will continue to cooperate under an existing commercial agreement for the U.S. company’s provision of equipment and services for in-flight entertainment and connectivity to Hainan Airlines, Beijing Capital Airlines and Yangtze River Airlines, according to the filing.