Amazon takes aim at Starlink with its $11.57 billion acquisition of Globalstar

Amazon has agreed to acquire satellite operator Globalstar in an all-cash deal worth $11.57 billion, marking a major expansion of its ambitions in the fast-growing satellite connectivity market currently dominated by Elon Musk’s Starlink.

Under the agreement, Amazon will take full control of Globalstar’s satellite operations, infrastructure and mobile satellite services spectrum licensing. The acquisition is expected to strengthen Amazon’s growing satellite division, Amazon Leo, as it prepares to launch direct-to-device connectivity services later this year.

Globalstar, best known for supporting Apple’s Emergency SOS feature on the iPhone, currently operates a relatively small constellation of low-Earth orbit satellites but has agreements to expand its network through the deployment of additional satellites, including launches supported by SpaceX.

The deal comes as competition in the satellite internet sector intensifies, with Amazon positioning Leo as a global broadband and mobility platform targeting aviation, maritime, enterprise and consumer markets. The company has secured early customers including Delta Air Lines, AT&T, Vodafone, and NASA and is developing satellite-based in-flight connectivity solutions.

READ ALSO: Amazon in talks to invest $50 billion in OpenAI, valuation could reach $830 billion

Amazon’s broader satellite plans envision a constellation of more than 3,200 low-Earth orbit satellites, although the launch has been hit by delays, as only about 200 satellites are currently deployed. The company has sought regulatory expansion to try to meet implementation targets.

In comparison, Starlink currently operates more than 10,000 satellites and provides services in around 150 countries, thereby maintaining a significant lead in this sector.

Concurrently with the acquisition, Amazon confirmed an agreement with Apple to continue providing satellite connectivity for iPhone and Apple Watch emergency services, strengthening Globalstar’s role in consumer safety communications.

Amazon said the Globalstar integration will support its long-term goal of building a global direct-to-device satellite network capable of serving hundreds of millions of endpoints through broadband and hybrid connectivity systems that are expected to increase significantly from 2028 onwards.

Check Also

LP crisis deepens as Abure loyalists warn INEC against new congresses

The internal crisis rocking the Nigerian Labor Party intensified on Tuesday as state presidents loyal …

Leave a Reply

Your email address will not be published. Required fields are marked *