Amazon Buys Globalstar for $11.57 Billion to Challenge Elon Musk's Starlink
Amazon will buy satellite company Globalstar for $11.57 billion to expand its space internet business. The deal helps Amazon catch up with Elon Musk's Starlink satellite network. Amazon also signed an agreement to work with Apple on future satellite services.
Amazon announced Tuesday it will acquire Globalstar in an $11.57 billion deal as the tech giant tries to compete with Elon Musk's dominant Starlink satellite internet service.
Globalstar shareholders can choose to receive either $90 in cash or 0.3210 shares of Amazon stock for each Globalstar share they own. The deal is expected to close in 2027.
The acquisition will strengthen Amazon's Leo satellite network, which aims to provide internet access from space. Amazon is also partnering with Apple to develop future satellite services using the expanded network.
This marks Amazon's biggest push yet into the satellite internet market, where SpaceX's Starlink currently leads with thousands of satellites already in orbit. The space internet race has heated up as companies compete to provide high-speed internet to remote areas that traditional cable and fiber networks can't easily reach.
Globalstar operates a constellation of satellites that currently provides voice and data services. Amazon plans to use these satellites and build new ones manufactured by MDA Space to expand its space-based internet capabilities.
This could give you more choices for internet service, especially in rural areas where cable and fiber don't reach. The competition between Amazon, SpaceX, and Apple might lead to better prices and faster satellite internet for everyone.
The deal needs regulatory approval and is expected to close in 2027. Watch for updates on Amazon's satellite launches and Apple partnership details.
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