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Amazon Acquires Globalstar in $10.8 Billion Deal to Expand Satellite Connectivity

The deal would give Amazon’s Leo satellite venture a boost as it vies with SpaceX’s dominant Starlink network.

Amazon Acquires Globalstar in $10.8 Billion Deal to Expand Satellite Connectivity

Key takeaways

  • Amazon has acquired Globalstar for approximately $10.8 billion to enhance its satellite connectivity efforts.
  • The acquisition provides Amazon control over Globalstar’s satellite fleet and crucial spectrum licences for mobile satellite services.
  • Globalstar is known for its low Earth orbit satellites, which support emergency communications and connectivity services globally.
  • Amazon plans to continue supporting existing Apple devices using Globalstar's network and collaborate on future satellite services.
  • This acquisition is a key step in Amazon’s strategy to develop its Leo broadband satellite network, set to launch in 2028.

Takeaways drafted with AI from the article text.

Amazon has acquired the satellite operations of Globalstar, marking a major push by the tech giant into space-based direct-to-device connectivity.

The deal, valued at approximately $10.8 billion, comprising around $4.6 billion in cash and stock currently valued at around $6.2 billion, will hand Amazon control of Globalstar’s existing satellite fleet, infrastructure, and critically, its mobile satellite service Band 53/n53 spectrum licences with global authorisations.

Globalstar, a pioneer in non-geostationary orbit satellites and direct-to-device (D2D) technology, operates a constellation of low Earth orbit (LEO) satellites that provide emergency communications, asset tracking, and connectivity services to consumers and enterprises worldwide. Among its most prominent partners is Apple, whose iPhone 14 and later models, as well as the Apple Watch Ultra 3, rely on Globalstar’s network for emergency satellite messaging and location sharing.

The acquisition is central to Amazon’s long-term ambitions for its Leo broadband satellite network. Beginning in 2028, Amazon Leo will deploy a next-generation D2D satellite system capable of delivering voice, data, and messaging services directly to mobile phones and other cellular devices, without the need for specialist hardware.

The company said in a statement that its system will offer significantly greater spectrum efficiency than existing direct-to-cell technology, promising faster speeds and improved performance. By combining Globalstar's established spectrum holdings and MSS capabilities with Leo’s scale and reach, Amazon believes it can deliver seamless connectivity for consumer, enterprise, and government customers globally.

Panos Panay, Amazon's Senior Vice President of Devices and Services, said the acquisition was driven by a desire to reach the billions of people living and working beyond the range of existing terrestrial networks. “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,” he said.

The deal would give Amazon’s Leo satellite venture a boost as it vies with SpaceX’s dominant Starlink network.

Globalstar CEO Paul Jacobs welcomed the tie-up, citing more than three decades of investment in LEO technology and globally harmonised spectrum. “The combination with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us towards a more intelligent, continuously connected world,” he said.

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