Amazon announced the acquisition of satellite company Globalstar for $11.6 billion. The acquisition is part of the company's plans to compete with Elon Musk's Starlink in the satellite internet market through the Leo project.
Amazon currently has a few hundred satellites through its Leo project, while SpaceX's Starlink already has about 9,000 operational satellites and 12 million customers. The satellite internet market is dominated by SpaceX, with Starlink being considered the crown jewel of Musk's aerospace company.
What the sources say
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Amazon offered $90 per Globalstar share in cash or 0.32 Amazon share
The price represents a 117% premium over the stock price before sale news
The deal completion is expected for 2027
Amazon plans to launch direct-to-device services in 2028 through the Leo project
Globalstar currently provides support for Apple's satellite services on iPhones and Apple Watch
Unconfirmed exclusive
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Globalstar reported revenue of $273 million last year
⚠ only one source — exclusive, unconfirmed
Unconfirmed exclusive
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Apple has a 20% stake in Globalstar
⚠ only one source — exclusive, unconfirmed
Unconfirmed exclusive
1 source
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This is Amazon's largest acquisition since buying Whole Foods in 2017
⚠ only one source — exclusive, unconfirmed
Number of Starlink satellites