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Amazon says to buy Globalstar to expand satellite network / Photo: Patrick T. Fallon - AFP/File
NYSE - LSE
Amazon says to buy Globalstar to expand satellite network
Amazon said Tuesday that it had signed a deal to buy the US telecoms satellite group Globalstar to expand its own space-based internet network and compete with Elon Musk's Starlink.
Amazon said it would make a cash-and-stock offer worth $90 to shareholders in Globalstar, which has a market value of around $9 billion, according to a Financial Times report this month flagging the deal.
The tech and e-commerce giant founded by Jeff Bezos is building its Amazon Leo network offering satellite-based internet connectivity to people practically anywhere on the planet.
"There are billions of customers out there living, traveling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide," Panos Panay, Amazon's senior vice president for devices and services, said in a statement.
Around 58 percent of Globalstar's shareholders have already accepted the deal, expected to close in 2027.
As part of the deal, Apple, which owns a 20 percent stake in Globalstar, will start using Leo for satellite services with iPhones and Apple Watches, such as its Emergency SOS contact service.
Leo, with around 200 satellites in orbit, is aiming to challenge Musk's SpaceX, which operates the Starlink service of 10,000 satellites.
The Globalstar deal comes as market speculation is rife that Musk is preparing an initial public offering of SpaceX shares that could raise a whopping $75 billion, which would be the largest IPO ever.
O.Nardolillo--INP
