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Amazon to buy Globalstar for $11.57B in bid to flesh out its satellite biz
Amazon has agreed to acquire Globalstar for $11.57 billion to enhance its satellite business, Amazon Leo. The deal will expand Amazon's operations in satellite connectivity, competing with Starlink. Globalstar, known for its emergency services on iPhone, adds 24 satellites to Amazon's plans. The acquisition follows Amazon's customer partnerships in various sectors and aims to launch services with over 3,200 satellites by 2028.
Key points
- Amazon is acquiring Globalstar for $11.57 billion to strengthen its satellite operations.
- The deal is priced at $90 per share and includes all of Globalstar’s infrastructure and spectrum licenses.
- This acquisition positions Amazon Leo to offer direct-to-device satellite services, competing with Starlink's extensive satellite network.
- Globalstar is known for providing 'Emergency SOS' services for Apple products, which Amazon will continue to support.
- Amazon Leo plans to deploy a satellite network including over 3,200 satellites, aiming to launch by 2028.
Why it matters
- The acquisition is part of Amazon's strategy to expand into the competitive satellite communications market.
- Amazon is seeking to catch up with Starlink, which currently operates over 10,000 satellites and serves a vast customer base.
- Globalstar's existing agreements, including partnerships with Apple and SpaceX, enhance Amazon's market positioning.
- This trend of companies entering satellite connectivity reflects the growing demand for global internet access, especially post-pandemic.
Amazon's purchase of Globalstar is a strategic move to bolster its satellite business amid competition from Starlink, aiming for significant growth in global connectivity solutions by 2028.