Amazon’s move to buy Globalstar marks a striking escalation in the race to build satellite communications networks that can reach ordinary smartphones and wearable devices. According to the company’s announcement, the all-cash and stock transaction values Globalstar at more than $11.5 billion and is intended to give Amazon Leo a direct-to-device service as it expands its low-Earth-orbit ambitions. Reuters reported the deal at $11.57 billion, while Bloomberg said shareholders will receive either $90 a share in cash or Amazon stock capped at that value. The transaction is expected to close in 2027, pending regulatory approvals and operational milestones.

The acquisition also deepens Amazon’s relationship with Apple. In parallel with the takeover announcement, the two companies said Amazon Leo will support satellite features on compatible iPhone and Apple Watch models, including emergency messaging, roadside assistance and other connectivity services. MacRumors reported that Amazon plans to keep supporting devices using Globalstar’s existing and forthcoming constellation, which is being built by MDA Space, while also developing future services with Apple on the expanded network.

Strategically, the deal underlines Amazon’s determination to challenge SpaceX’s Starlink, which remains vastly larger in orbit. Reuters noted that Globalstar’s fleet is tiny by comparison, with just two dozen satellites, while Amazon has been working towards a much larger low-Earth-orbit buildout. The purchase would also give Amazon control of Globalstar’s infrastructure and spectrum assets, strengthening its hand in a sector where scale, launch capacity and regulatory timing are all critical.

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Source: Noah Wire Services