Amazon Buys Globalstar For $10.8 Billion, Moving To Expand Its Satellite Internet Service

Source: Slashdot

Deal Overview

Amazon is buying satellite communications company Globalstar for $10.8 billion to expand its Leo satellite‑internet network and compete more directly with SpaceX’s Starlink. The deal also includes a partnership with Apple to support satellite connectivity for iPhones and Apple Watches, with Amazon planning voice, data, and messaging services starting in 2028.

Industry Context

The New York Times reports that Leo was Amazon’s move to enter the market for beaming high‑speed internet to the ground from orbit, an arena dominated by Elon Musk’s SpaceX, which operates the Starlink satellite‑internet service. Starlink, which has thousands of satellites in orbit, already serves several million customers worldwide. This month, SpaceX filed to go public in what is shaping up to be one of the largest‑ever initial public offerings. Musk has valued SpaceX— which has landed contracts with federal agencies such as NASA and the Department of Defense— at more than $1 trillion. Other companies are racing to catch up to what Musk has built for space.

About Globalstar

Globalstar, founded in 1991, is a Louisiana‑based global telecommunications company. It operates networks of low‑Earth‑orbiting satellites to provide internet connectivity to customers. Paul Jacobs, Globalstar’s chief executive, said in a statement that together, the two companies “will advance innovations in digital connectivity.”