Amazon buys Globalstar

Amazon agreed on April 14 to buy Globalstar for about $11.6 billion, giving the company a satellite operator, spectrum licenses, and a direct link to phone-based satellite service. (aboutamazon.com) Amazon said Globalstar shareholders can take $90 a share in cash or 0.3210 shares of Amazon stock, and the companies expect the deal to close in 2027 after regulatory review. (sec.gov) The purchase folds Globalstar’s existing satellites, ground infrastructure, and mobile satellite spectrum into Amazon Leo, Amazon’s low Earth orbit network. Amazon said that combination will let Leo add direct-to-device service, which connects ordinary phones outside cellular range. (aboutamazon.com) Satellite internet uses spacecraft in low Earth orbit as relay towers in the sky, sending data to ground stations and user devices where cell towers do not reach. Direct-to-device service cuts out a special dish and lets supported phones send texts, emergency messages, and other data straight through satellites. (aboutamazon.com) Amazon has been building Leo to challenge SpaceX’s Starlink, which Reuters reported has about 10,000 satellites in orbit and more than nine million users worldwide. Reuters also reported Amazon has more than 200 satellites in orbit and plans a constellation of about 3,200 by 2029. (nbcnews.com) Globalstar brings a smaller network but a valuable foothold in phone connectivity. Reuters reported the company operates about two dozen satellites today and is best known for powering Apple’s Emergency SOS via satellite feature on the iPhone. (nbcnews.com) Amazon and Apple also announced a separate agreement for Amazon Leo to power satellite features on supported iPhone and Apple Watch models, including emergency texting and roadside assistance. Amazon said it plans to work with mobile network operators to extend voice, text, and data coverage beyond terrestrial cellular networks. (aboutamazon.com) Investors treated the deal as a satellite push with immediate strategic value. CNBC reported Globalstar shares jumped more than 9% in premarket trading on April 14, while Amazon shares rose about 1%. (cnbc.com) The next test is execution: Amazon still has to win approvals, integrate Globalstar, and put more satellites into orbit on schedule. If that happens, the company moves from selling terminals for satellite broadband toward selling connectivity straight to phones. (sec.gov)