Amazon announces purchase of satellite operator Globalstar
The U.S. giant proposes to pay up to $90 per Globalstar share, through payment in cash or with its own shares, according to a statement. The deal would value the company at $11.6 billion.
Amazon headquarters/ Alfredo Estrella
Amazon announced Tuesday the purchase of U.S. satellite operator Globalstar to strengthen its position against competitor Starlink, owned by billionaire Elon Musk.
The U.S. giant is proposing to pay up to $90 per Globalstar share, through payment in cash or with its own shares, according to a statement.The deal would value the company at $11.6 billion.
The two companies announced the completion of a definitive merger agreement under which Amazon will acquire Globalstar, they said.
The deal will allow Amazon to integrate Globalstar's satellites and radio frequencies held by the company and strengthen its space connectivity sector.
Like Starlink, a SpaceX group brand specializing in satellite telecommunications, Amazon also entered this sector, which allows users located in areas not covered by the mobile network to make calls, send SMS messages and connect to the internet.
The Amazon group, founded by Jeff Bezos, began launching its first test satellites in October 2023.
Amazon Leo
The service, called Amazon Leo, was so far not deployed on a large scale and no date for its commissioning was communicated.
Starlink, meanwhile, reached the 10,000-satellite threshold in March and claims to have more than nine million customers worldwide.
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