Amazon has announced the acquisition of Globalstar in a $11.57 billion deal, aiming to accelerate its expansion in satellite internet services and compete with Elon Musk’s Starlink network.
Details
The deal boosts Amazon’s capabilities by adding around 24 satellites to its network of more than 200, as part of a broader plan to deploy about 3,200 satellites in low Earth orbit by 2029.
- Amazon plans to roll out satellite internet services later this year, expanding into direct-to-device connectivity without relying on ground towers.
- This technology enables emergency services and connectivity in low-coverage areas, already used by iPhones and Apple Watches.
- Amazon confirmed it will maintain its partnership with Apple to power services like Emergency SOS and Find My through Globalstar’s network.
- Apple holds roughly a 20% stake in Globalstar following a previous $1.5 billion investment.
Meanwhile, Starlink still holds a significant lead, with a network of about 10,000 satellites and more than 9 million users worldwide, alongside similar service development through telecom partnerships.
The deal offers Globalstar shareholders $90 per share in cash or Amazon stock, representing a premium of over 30% before deal rumors surfaced. The acquisition is expected to close next year, pending regulatory approvals, including from the U.S. Federal Communications Commission.
What’s Next?
Focus is currently shifted to whether Amazon can accelerate deployment and effectively challenge Starlink, particularly in direct-to-device connectivity over the coming years.
