Amazon has embarked on a significant expansion of its satellite capabilities, entering into two key agreements aimed at enhancing its Amazon Leo network. The company has reached a merger agreement to acquire satellite operator Globalstar for approximately $11.6 billion. This move is expected to position Amazon as a strong competitor against SpaceX’s Starlink in the satellite internet market.
Additionally, Amazon has partnered with Apple to offer satellite service for iPhones and Apple Watches, designating itself as the primary satellite service provider for these devices. The collaboration aims to enable satellite connectivity for existing and future iPhone and Apple Watch functionalities, particularly for the iPhone 14 and newer models, as well as the Apple Watch Ultra 3.
Globalstar shareholders will have the option of receiving either $90 in cash per share or a stock swap with a capped value. The final deal valuation may vary based on fluctuations in Amazon's stock price, with estimates ranging from $10.8 billion to $11.6 billion. Globalstar previously explored a potential sale to SpaceX, indicating a competitive backdrop in the satellite industry.