Amazon and Globalstar have entered into a definitive merger agreement that will see Amazon acquire the satellite operator to bolster its Amazon Leo Low Earth Orbit network.
The acquisition includes Globalstar’s satellites, radio frequency spectrum, and operational expertise, which will allow Amazon to integrate Direct-to-Device (D2D) services into its burgeoning space-based network. By acquiring Globalstar’s Mobile Satellite Services (MSS) spectrum licences, Amazon also intends to extend cellular coverage to areas that terrestrial towers cannot reach.
“There are billions of customers out there living, travelling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” said Panos Panay, Senior Vice President of Devices & Services at Amazon.
Amazon has also entered an agreement with Apple to power satellite services for supported iPhone and Apple Watch models. This will allow individuals on vessels or in remote coastal areas to use satellite services without the need for a dedicated terminal, though only in shipboard areas where they can connect their phones to the service.
The expanded network will also support data services for Internet of Things (IoT) applications, allowing companies to track assets and fleets across the globe.
The transaction involves a total consideration where Globalstar stockholders will receive either US$90.00 in cash or a portion of Amazon common stock. The acquisition is expected to close in 2027, following regulatory approvals and the achievement of specific satellite milestones.
