In a significant move to strengthen its space-based internet services, Amazon.com has announced plans to acquire satellite company Globalstar in a deal valued at $11.57 billion.
The acquisition is aimed at boosting Amazon’s satellite capabilities as it looks to compete with Elon Musk-led Starlink. Following the announcement, Globalstar shares rose more than 9% in premarket trading, after already gaining over 6% in the past 2 weeks. The stock had nearly doubled last year and was up about 12% this year before the deal news. Amazon shares also rose around 1% on Tuesday.
The deal will give Amazon access to Globalstar’s network of about 2 dozen satellites, supporting its plan to expand its presence in the satellite internet market. Currently, Starlink, operated by SpaceX, leads the segment with around 10,000 satellites in orbit.
Under the agreement, Globalstar shareholders can choose to receive either $90 in cash or 0.3210 shares of Amazon common stock for each share they hold.
Amazon is working to scale its satellite network to about 3,200 satellites in low-Earth orbit by 2029. Around half of these need to be deployed by a July 2026 regulatory deadline. The company currently operates more than 200 satellites and is preparing to launch its satellite internet services later this year.
In comparison, Starlink already serves more than 9 million users worldwide, maintaining a strong lead in the market.
Globalstar, based in Covington, Louisiana, is known for powering Apple’s “Emergency SOS” feature. It currently operates around 2 dozen satellites, with plans to expand to 54 satellites, including backup units, under a new Apple-backed network.
The company provides voice, data, and asset-tracking services to enterprise, government, and consumer customers.
In a parallel development, Amazon and Apple, which has invested about $1.5 billion in Globalstar, have signed an agreement to continue supporting satellite-based safety features like Emergency SOS and Find My for iPhone and Apple Watch users.
The acquisition is expected to close next year, subject to regulatory approvals and certain satellite deployment milestones.
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