• Amazon announces an $11.57 billion acquisition of Globalstar to enhance its satellite internet services.
• The deal will significantly boost Amazon's satellite capabilities, positioning it to compete with SpaceX's Starlink.
• Globalstar currently operates a limited number of satellites, which Amazon aims to expand significantly by 2028.
• The acquisition includes partnerships with major clients, including Apple and Delta Airlines.
• Amazon's strategy focuses on providing direct-to-device satellite connectivity.

Amazon.com has agreed to acquire satellite operator Globalstar in a deal valued at approximately $11.57 billion, enhancing its capabilities to provide satellite-based internet and mobile services. This acquisition is seen as a direct move to compete with Elon Musk's Starlink, which currently dominates the market with over 10,000 satellites and around 10 million subscribers. The acquisition will give Amazon greater access to Globalstar's existing satellite network as it ramps up its own operations under the Amazon Leo project, set to deploy thousands of satellites in low Earth orbit by 2028, according to Reuters, Los Angeles Times, and BBC.

As part of the deal, Amazon is offering Globalstar shareholders either $90 in cash or equivalent Amazon stock, a substantial premium from previous stock prices. Amazon’s plan to enter the direct-to-device (D2D) market aligns with its strategy to provide connectivity similar to what Starlink offers, which has seen success in difficult-to-reach areas. Globalstar, which has an established service partnership with Apple for emergency messaging, is expected to support Amazon's ambitions to offer similar or enhanced features in its satellite network, according to Los Angeles Times and BBC.

The acquisition is anticipated to close in 2027, pending regulatory approvals and the achievement of specific satellite deployment milestones. Amazon has faced challenges in launching its satellite network amidst delays but has committed to building a system capable of supporting a wide range of services. This includes a partnership for in-flight Wi-Fi services with Delta Airlines, which illustrates Amazon's broader ambitions within this competitive and rapidly evolving space, according to Reuters, Los Angeles Times, and BBC.

Amazon's acquisition of Globalstar highlights the increasing competitive landscape in satellite communications, particularly as new players like Blue Origin, co-founded by Jeff Bezos, also plan to launch their own satellite internet services. With significant investments in both satellite technology and customer partnerships, Amazon aims to position itself as a formidable contender against established players like SpaceX and its Starlink service, according to Los Angeles Times and BBC.