Amazon entered into a deal to acquire Globalstar for around 11.6 billion as it looks to bolster its Amazon Leo satellite business with direct-to-device (D2D) services.
Amazon stated it will take control of Globalstar’s existing satellite operations, infrastructure and assets, including MSS spectrum licences and global authorisations.
It pointed to numerous benefits of the tie-up, including Amazon Leo being able to beef up its connectivity offering for consumer, enterprise and government customers, utilising Globalstar’s existing fleet and its new satellites to operate alongside its broadband system.
Beginning in 2028, Amazon Leo said it will deploy its own next-generation D2D satellite system, offering “substantially higher spectrum use and efficiency” than legacy D2D systems, claiming this will translate into faster speeds and performance for customers.
Amazon added it will integrate first and second generation Leo systems, forming a powerful, unified network combining fixed and mobile satellite services.
The complete Leo network will include “thousands of advanced satellites in low Earth orbit, aiming to support millions of customers”.
Amazon currently has 200 satellites in orbit, with a goal of operating 3,200 by 2029. As per Federal Communications Commission (FCC) requirements, it is required to have roughly half in place by July 2026.
Panos Panay, SVP of Devices & Services at Amazon, said the deal with Globalstar will give its customers more reliable and faster satellite services.
Under terms of the deal, Globalstar stockholders can choose to receive $90 in cash for each stock they own or 0.3210 shares of Amazon common stock, capped at $90 per share.
The deal is expected to close in 2027, subject to regulatory approval and Globalstar reaching certain satellite milestones.
Writing on LinkedIn, Luke Pearce, principal analyst at CCS Insight, said the deal with Globalstar gives Amazon “a major shortcut in providing satellite services to smartphones”, while hailing the potential of the “exclusive” Apple partnership. “Tying this up with its accelerating Amazon Leo fixed broadband and AWS offering, this really strengthens its position against SpaceX’s Starlink”.
Source: Mobile World Live
Image Credit: Amazon
Source: Tahawul Tech