Amazon acquires Globalstar for $11.57 billion

In Short:
– Amazon will acquire Globalstar for $11.57 billion to improve its satellite business and challenge Starlink.
– The acquisition enables Amazon to enhance its Direct-to-Device services and maintain Apple’s satellite safety features.

Amazon.com will acquire Globalstar in an $11.57 billion deal to enhance its satellite business and compete with Elon Musk’s Starlink.Tech companies are investing heavily in the satellite connectivity market, making it challenging to rival Starlink’s extensive network of 10,000 satellites.

Amazon acquires Globalstar

Through this acquisition, Amazon will add Globalstar’s two dozen satellites to its existing network of over 200.

Amazon aims to launch approximately 3,200 satellites in Earth’s low orbit by 2029, with many required by a regulatory deadline in July.

The company plans to initiate its satellite internet services later this year.

Globalstar’s network is designed for low-data connections directly to mobile devices, providing essential connectivity in areas with limited cellular service.

This deal will enable Amazon to implement Direct-to-Device (D2D) services starting in 2028.

In contrast, Starlink serves over 9 million users worldwide and is developing D2D services through partnerships with telecoms like T-Mobile.

“Amazon is behind Starlink in satellite broadband, but acquiring Globalstar will enhance its D2D capabilities,” said Armand Musey, president of Summit Ridge Group.