Why did Amazon acquire Globalstar?

Amazon acquired Globalstar for $11.6 billion to gain crucial radio frequency licenses for its planned direct-to-device satellite service, intensifying competition with Starlink.

When will Amazon launch its direct-to-device service?

Amazon plans to launch its direct-to-device satellite service in 2028, offering mobile connectivity directly to phones.

How does Amazon's Globalstar deal affect competition with Starlink?

Amazon's acquisition of Globalstar significantly increases competition with Elon Musk's Starlink in the satellite communications market, aiming to offer improved services.

Home / Business and Economy / Amazon Buys Globalstar, Challenging Musk's Starlink

Amazon Buys Globalstar, Challenging Musk's Starlink

15 Apr

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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 Buys Globalstar, Challenging Musk's Starlink

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.