Amazon's Bold Satellite Leap: Acquiring Globalstar for $11.57 Billion
Amazon is set to acquire Globalstar in a $11.57 billion deal, enhancing its satellite capabilities to compete with SpaceX's Starlink. The acquisition will add Globalstar's fleet to Amazon's existing network, aiming for deployment of 3,200 satellites by 2029. The move is crucial for advancing Direct-to-Device connectivity.
Amazon announced plans to acquire Globalstar for $11.57 billion, bolstering its satellite business to challenge Elon Musk's Starlink. The deal integrates Globalstar's satellite fleet into Amazon's network, enhancing its capacity in satellite-based connectivity.
Amazon aims to deploy 3,200 satellites by 2029, with half required by a regulatory deadline in July. The Globalstar acquisition supports the rollout of Amazon's Direct-to-Device technology, eliminating the need for ground-based towers.
The move is part of a broader trend of consolidation in the satellite sector, responding to SpaceX's dominance. Globalstar shareholders can opt for cash or Amazon stock, with the acquisition expected to close next year, pending regulatory approval.
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