Amazon on Tuesday announced an agreement to acquire US telecom satellite operator Globalstar as part of its strategy to expand a space-based internet network capable of competing with Starlink, the satellite broadband service operated by SpaceX.
The e-commerce and technology giant said it would make a cash-and-stock offer valued at $90 per share to Globalstar investors. The satellite firm currently has an estimated market value of about $9 billion.
Amazon, founded by Jeff Bezos, is developing a low-Earth orbit satellite system known as the Amazon Leo network, aimed at delivering internet connectivity to remote and underserved regions around the world.
“There are billions of customers out there living, traveling and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” said Panos Panay, Amazon’s senior vice president for devices and services.
According to the company, approximately 58 percent of Globalstar shareholders have already agreed to the acquisition, which is expected to close in 2027 pending regulatory approvals.
As part of the agreement, Apple—which owns a 20 percent stake in Globalstar—will begin integrating Amazon Leo’s satellite network into its devices.
The technology will support satellite-based services on devices such as the iPhone and Apple Watch, including Apple’s Emergency SOS satellite messaging feature designed for use in areas without cellular coverage.
Amazon’s Leo network currently has around 200 satellites in orbit and aims to expand rapidly as it seeks to challenge the growing presence of Starlink, which operates roughly 10,000 satellites globally.
The competition in satellite internet services has intensified in recent years as companies race to provide global connectivity from space.
Meanwhile, industry speculation continues to mount that Elon Musk could take SpaceX public in what analysts believe might be one of the largest stock offerings in history.
Reports suggest a potential initial public offering of SpaceX could raise as much as $75 billion, potentially making it the biggest IPO ever recorded.
