Amazon’s Bold Move: Acquiring Globalstar for $11.6B to Compete in the Space Race
Amazon announced on Tuesday a definitive agreement to acquire the satellite communications operator Globalstar for approximately $11.57 billion. This marks the tech giant’s most aggressive move yet to challenge SpaceX’s dominance in the low-Earth orbit satellite market.
Under the deal, valued at $90 per share, Amazon will acquire Globalstar’s existing satellite operations, infrastructure, and mobile satellite services spectrum licenses with global authorizations. This acquisition will significantly bolster Amazon Leo, the company’s satellite internet service that currently has about 241 satellites in orbit and aims to launch commercial service by mid-2026.
The transaction enables Amazon to accelerate its direct-to-device (D2D) satellite system deployment, planned to begin in 2028. This technology allows mobile devices to connect directly to satellites without the need for ground-based cellular towers, a crucial aspect for delivering connectivity in remote areas.
In a parallel announcement, Amazon and Apple signed an agreement for Amazon Leo to power satellite connectivity services for current and future iPhone and Apple Watch models. Globalstar currently partners with Apple to provide Emergency SOS features on iPhone 14 and later devices, along with Apple Watch Ultra 3. This allows users to text emergency services and share locations beyond cellular coverage.
Globalstar stockholders holding approximately 58% of voting power have already approved the transaction. The deal is expected to close in 2027, subject to regulatory approvals and achievement of certain satellite deployment milestones. Shares of Globalstar surged over 9% following the announcement, while Amazon stock gained more than 3%.
Source: CNBC