Amazon buys Globalstar for 11.6 billion: challenge to Starlink
Amazon is buying satellite telecommunications group Globalstar for $11.6 billion. The deal will accelerate Jeff Bezos' company's efforts to build up its low-orbit satellite network and make up lost ground to Elon Musk's Starlink
Amazon is buying satellite telecommunications group Globalstar for USD 11.6 billion. The deal will accelerate the efforts of Jeff Bezos's company to build up its low-orbit satellite network and catch up with Elon Musk's Starlink.
Amazon strengthens in satellites
Amazon has decided to buy the Globalstar satellite operator, the one behind the emergency services provided by Apple for its iPhone. The group founded by Jeff Bezos boosted Globalstar's share price (+8% to almost $79) and issued a challenge to Starlink, the satellite division of SpaceX (Elon Musk's space company).
According to the agreement, before the deal closes in 2027, Globalstar shareholders will receive $90 in cash from the e-commerce and cloud giant for each Globalstar share they own or 0.3210 Amazon shares worth up to $90 per share. This is a 23.5 per cent premium over Globalstar's value at the end of the session yesterday.
The gap to be bridged
With this agreement, Amazon strengthens its network of satellites in low earth orbit at a time when satellite broadband is booming, especially in hard-to-reach locations. However, Amazon is lagging behind in its goal to expand its coverage to over 7,700 satellites. Starlink has about 10,000 satellites in orbit with over 10 million active customers.
