Amazon will buy Globalstar for $11.57B to expand its satellite biz

Amazon is moving into the orbital telecommunications market currently dominated by Elon Musk’s Starlink. The company on Tuesday said it had agreed to buy satellite company Globalstar, known for supporting Apple’s “Emergency SOS” service, for $11.57 billion.

The $90-per-share deal will give Amazon all of Globalstar’s operating satellites, infrastructure, and mobile satellite licenses, allowing the giant to complement its smaller satellite business, Amazon Leo, with direct services before it launches later this year.

The announcement comes just days after Amazon CEO Andy Jassy to be approved Amazon Leo’s customers include Delta Airlines, AT&T, Vodafone, Australia’s National Broadband Network, and NASA. The company on Monday too he showed a new internet satellite antenna for commercial jets that promises high-speed internet during flights.

The company is expected to launch more than 3,200 low-Earth orbit satellites, although it has faced delays and has so far produced only about 200 satellites. Amazon eventually had to ask the Federal Communications Commission add it the target date is to have about 1,600 satellites by July this year.

By comparison, the largest Starlink is currently in operation more than 10,000 satelliteswhich provides Internet services in approximately 150 countries to commercial and business users, including the maritime and travel industries.

Globalstar has more than 24 satellites in Low-Earth orbit, and has contracts to buy more than 50 new satellites. The company also has an agreement with SpaceX to replace its current fleet of satellites this year.

Along with the deal, Amazon said it has reached an agreement with Apple to continue providing satellite connectivity for the iPhone and Apple Watch. Globalstar currently offers satellite services such as emergency texting, roadside assistance, and location sharing, which are available on the Apple iPhone 14 and later devices in some regions.

Amazon Leo is also expected to deploy its satellite system from 2028, which will include its current system and satellites. The company said it plans to build “thousands of advanced satellites” that will “serve hundreds of millions of customers around the world.”