Amazon buys Globalstar for $11.6 billion to challenge Starlink Mobile
Amazon is acquiring Globalstar for $11.6 billion, a deal that includes Apple's 20% stake in the company. This acquisition aims to develop a direct-to-device satellite constellation, intending to provide voice, text, and data connectivity to smartphones and compete with SpaceX's Starlink Mobile.
Key Takeaways
- Amazon's acquisition values Globalstar at $11.6 billion.
- The deal includes Apple's 20% stake in Globalstar, which Apple paid $400 million for in 2022.
- Amazon says the satellite network will provide voice, text, and data connectivity to smartphones without specialized hardware.
- The company told the FCC it will rapidly deploy the constellation.
- The target competition is SpaceX's Starlink Mobile.
Why It Matters
Amazon is moving from stake purchase to direct control of Globalstar, giving it a faster path to a direct-to-device satellite constellation for smartphones. That puts the company squarely against SpaceX's Starlink Mobile in a race to deliver voice, text, and data without special hardware. The key signal to watch is Amazon's FCC filing and any timeline it gives for rapid deployment of the constellation.
Read full article at msn.com
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