Amazon to buy Globalstar for $11.57B in bid to flesh out its satellite biz

In a bold move to enhance its presence in the satellite connectivity market, Amazon has announced its acquisition of Globalstar for a staggering $11.57 billion in cash. This strategic purchase, valued at $90 per share, will allow Amazon to take control of Globalstar’s satellite operations, infrastructure, and mobile satellite services spectrum licenses, significantly bolstering its nascent satellite business, Amazon Leo. The announcement was made just days after Amazon CEO Andy Jassy highlighted Amazon Leo's impressive list of clients, which includes major players such as Delta Airlines, AT&T, Vodafone, Australia’s National Broadband Network, and NASA. Additionally, Amazon recently unveiled a new satellite internet antenna designed specifically for commercial aircraft, promising high-speed internet access during flights. Amazon's satellite project is set to launch with an ambitious plan of deploying over 3,200 satellites in low-Earth orbit. However, the company has encountered challenges, having only successfully launched about 200 satellites to date. To meet regulatory requirements, Amazon sought an extension from the Federal Communications Commission, which mandates that it must have around 1,600 satellites operational by July this year. In comparison, Starlink, the satellite internet service operated by Elon Musk's SpaceX, currently boasts more than 10,000 satellites and provides internet services across approximately 150 countries, catering to both individual consumers and businesses in sectors like maritime and aviation. Globalstar itself operates more than 24 satellites in low-Earth orbit and has agreements for the acquisition of over 50 new satellites. The company has also partnered with SpaceX to launch replacement satellites for its existing constellation later this year. Alongside this acquisition, Amazon has reached an agreement with Apple to maintain satellite connectivity services for the iPhone and Apple Watch, enhancing Globalstar’s offerings such as emergency text messaging and roadside assistance, which are available on newer iPhone models. Looking forward, Amazon Leo plans to launch its own direct-to-device satellite system by 2028, integrating it with existing broadband and satellite infrastructures. The company aims to establish a network of thousands of advanced satellites in low-Earth orbit, designed to support hundreds of millions of customer endpoints globally.