Amazon to acquire Globalstar satellite operator in USD11.6b deal
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The news: Amazon has agreed to acquire satellite operator Globalstar Inc for roughly USD11.6 billion ($16.28 billion), boosting its efforts to compete with Elon Musk’s SpaceX-owned Starlink network.
The numbers: A press release on the announcement shared Tuesday said Amazon is offering Globalstar shareholders either USD90 per share in cash or 0.32 shares of Amazon stock with a value capped at USD90 a share. The offer represents a 23.5% premium over Globalstar’s closing share price on Monday.
The context: The deal, which is expected to close in 2027, will bolster Amazon’s nascent satellite internet business, Leo, as it aims to compete with Musk’s Starlink unit which already boasts over 10 million customers and around 10,000 satellites in orbit.
Leo, Amazon’s low-earth-orbit satellite has been falling behind in its efforts to boost coverage and asked the Federal Communications Commission earlier this year to waive or extend its deadline to have 1,600 satellites deployed by mid-2026.
What they said: Panos Panay, senior vice president of devices and services, Amazon said in a statement: “By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places — keeping them connected to the people and things that matter most. We’re excited to support Apple users through the Leo D2D system, and look forward to working with mobile network partners to help extend coverage to every corner of the planet.”
