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Amazon Buys Globalstar, Challenging Musk's Starlink
15 Apr
Summary
- Amazon acquires Globalstar for $11.6 billion to boost satellite services.
- The deal enables Amazon's direct-to-device mobile service launch in 2028.
- Amazon aims to compete with Elon Musk's Starlink in the growing market.
Amazon.com Inc. is acquiring Globalstar Inc. for $11.6 billion, a move poised to significantly escalate competition with Elon Musk's Starlink in the rapidly expanding satellite communications sector. The deal, expected to finalize in 2027, grants Amazon essential radio frequency licenses. These are critical for launching Amazon's direct-to-device service in 2028, which will offer connectivity straight to mobile phones.
This acquisition represents Amazon's second-largest purchase, signaling a strong push into satellite services to diversify its revenue streams. It aims to challenge Starlink's established presence, which currently serves millions and is known for reliable internet in remote areas. Amazon's move also positions its Amazon Leo broadband satellite network to host Apple's emergency messaging service, formerly with Globalstar.
Globalstar's value lies in its FCC-licensed spectrum, vital for Amazon's direct-to-device ambitions, distinct from its existing broadband satellite system. This acquisition enables Amazon to pursue its goal of offering superior satellite service and challenging Starlink's market dominance. Globalstar has underpinned satellite services for Apple devices since the iPhone 14, a partnership that provided the company a crucial lifeline before Amazon's backing.
