Amazon has agreed to acquire Globalstar, an operator of internet satellites, for $11.6 billion. The deal values Globalstar at $90 per share, a 23.4% premium.
The acquisition, expected to close in 2027, is contingent on regulatory approvals and upgrades to Globalstar's satellite constellation.
"Customers can expect faster, more reliable service in more places," stated Panos Panay, Amazon's senior vice president of devices and services.
Globalstar utilizes low-Earth orbit satellites to provide wireless connectivity in remote areas, allowing direct connection via devices like smartphones. Its system transmits data to ground gateway stations for forwarding to terrestrial networks.
Last year, Globalstar commissioned 48 new satellites for approximately $800 million, incorporating beamforming technology to enhance connection speeds. The order followed a $1.5 billion investment from Apple Inc., which uses Globalstar's satellites for its iPhone Emergency SOS feature.
Amazon confirmed Globalstar satellites will continue supporting Apple services post-acquisition. The e-commerce giant also plans to integrate Globalstar's assets with its own satellite network, Amazon Leo, which comprises over 200 satellites.
This acquisition includes Globalstar's two ground gateway stations and valuable spectrum licenses, facilitating direct-to-device connections without requiring satellite dishes. Amazon aims to launch its direct-to-device satellite internet system in 2028 as part of planned expansions to its Leo constellation, which will include thousands of new satellites to support hundreds of millions of devices.