Amazon is acquiring satellite operator Globalstar for approximately $11.57 billion. This move bolsters the Amazon Leo initiative, formerly known as Project Kuiper. The acquisition positions Amazon to compete directly with Elon Musk’s Starlink service.
Amazon gains an existing fleet of 24 satellites and critical spectrum licenses. The company aims to launch direct-to-device satellite services by 2028. Amazon committed to deploying approximately 3,200 satellites by 2029.
Amazon will now manage Globalstar’s partnership providing Emergency SOS features for Apple. Amazon shares rose 5% following the announcement. Globalstar stock jumped 10% as investors approved the strategic expansion.