admin Amazon has officially stepped up its game in the high-stakes space race by announcing a massive $11.57 billion deal to acquire Globalstar. This move is a clear signal that the retail giant is ready to go head-to-head with Elon Musk’s Starlink, which currently dominates the satellite internet market. By bringing Globalstar into the fold, Amazon isn’t just buying hardware; it’s securing a vital shortcut to bolster its own satellite venture, Project Kuiper.
The gap between the two companies is currently quite wide, as Starlink boasts a massive fleet of about 10,000 satellites while Amazon’s network is still in its early stages with roughly 200 units. However, this acquisition adds Globalstar’s specialized fleet and, more importantly, its “Direct-to-Device” (D2D) technology. This clever tech allows your smartphone to connect directly to a satellite without needing a cell tower, which is a lifesaver for people in dead zones or emergency situations.
One big question following the announcement was what would happen to Apple. Since Globalstar currently powers the Emergency SOS features on the iPhone and Apple Watch, many wondered if that partnership would dissolve. Amazon quickly cleared the air by confirming they have signed an agreement with Apple to keep those life-saving services running smoothly. This is a relief for millions of users who rely on that satellite link when they wander off the grid.
Amazon is currently under a lot of pressure from regulators to get its birds in the sky. The company is required to have about half of its planned 3,200-satellite network operational by a July deadline. While Starlink already serves over 9 million users, Amazon is just getting ready to roll out its first wave of internet services later this year. Experts suggest that buying Globalstar gives Amazon the “spectrum” or airwaves it needs to not only catch up but potentially jump ahead in mobile satellite features by 2028.
The market reacted with plenty of excitement as Globalstar’s stock price jumped 10% following the news, while Amazon’s own shares saw a healthy 3% bump. Under the terms of the deal, Globalstar shareholders can choose to take $90 in cash or trade their shares for Amazon stock.
While the deal still needs a thumbs-up from the FCC, the agency’s chair has already mentioned they are keeping an “open mind” about the merger. If everything goes according to plan, the acquisition should wrap up sometime next year, officially kicking off a new era of competition in the skies.
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