Amazon said on Tuesday it will be buying satellite company Globalstar, known for powering Apple’s “Emergency SOS” feature, for $11.57 billion in cash. Amazon will get all of Globalstar’s satellite operations, infrastructure, and mobile satellite services spectrum licenses with the $90-per-share deal.
This deal will allow Amazon to expand its satellite business, Amazon Leo, enabling direct-to-device services ahead of its launch later this year. The business is expected to launch with more than 3,200 satellites in low-Earth orbit, though it has faced delays and has so far launched only about 200 satellites. The company had to ask the Federal Communications Commission to extend a deadline that requires having about 1,600 satellites in orbit by July this year.
Globalstar has more than 24 satellites in low-Earth orbit, and has agreements in place to acquire more than 50 new satellites. It also has an agreement with SpaceX to launch replacement satellites for its current constellation this year.
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“We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime,” said Paul Jacobs, CEO, Globalstar.
“For more than 30 years, Globalstar has executed on this vision through sustained, long-term investment in technological innovation, operational excellence, and development of globally harmonized spectrum across both satellite and terrestrial applications. The combination with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world.”
The announcement comes days after Amazon CEO Andy Jassy mentioned Amazon Leo’s roster of customers, which includes Delta Airlines, AT&T, Vodafone, Australia’s National Broadband Network, and NASA. On Saturday, the company also showed off a new satellite internet antenna meant for commercial jets that promises high-speed internet during flights.
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Amazon also said it had signed a deal with Apple, to continue providing satellite connectivity services for the iPhone and Apple Watch. Globalstar currently provides satellite services like emergency text messaging, requesting roadside assistance, and location sharing, available on Apple’s iPhone 14 and later devices in certain regions.
Amazon Leo is also slated to deploy its own direct-to-device satellite system from 2028, which would integrate with its current broadband and satellite systems. Amazon says it plans to develop a network of “thousands of advanced satellites in low-Earth orbit” that would “support hundreds of millions of customer endpoints around the world.”