Amazon Acquires Globalstar for $10B+: A Bold Move to Dominate Direct-to-Device Satellite ConnectivityAmazon has officially announced a definitive agreement to acquire Globalstar Inc., a leading provider of Direct-to-Device (D2D) satellite services. Upon completion of the merger, Globalstar will be rebranded as Amazon Leo D2D, aiming to provide voice, text, and high-speed internet connectivity in areas currently beyond the reach of traditional cellular networks.
The $10 Billion Strategic Acquisition
The deal is valued at over $10 billion. Globalstar shareholders are offered a choice: $90 in cash per share or an exchange for Amazon stock at a ratio of 0.3210. While the formal shareholder meeting is pending, 58% of shareholders have already signed written consents, paving the way for the deal to close by 2027.
Securing the Apple Partnership
A critical component of this acquisition is Globalstar’s long-standing relationship with Apple. Since the iPhone 14, Apple has utilized Globalstar's network for its Emergency SOS via Satellite feature.
Immediately following the merger announcement, Amazon signed a separate agreement with Apple. Both giants have committed to maintaining the current satellite services for iPhone users while collaborating on expanding next-generation features. This effectively ends speculation about Apple’s future satellite provider and integrates Apple’s ecosystem into Amazon’s expanding space infrastructure.
The Road to 2028: Amazon Leo D2D
Amazon Leo D2D is scheduled to launch in 2028. Unlike current emergency-only services, Amazon plans to deploy a constellation of thousands of satellites to offer high-speed broadband directly to smartphones, rivaling SpaceX’s Starlink Direct-to-Cell capabilities.
The acquisition of Globalstar is a crucial piece of the puzzle for Project Kuiper (Amazon's satellite internet project). While Kuiper focuses on home satellite systems, Amazon Leo D2D will focus on direct connection to "mobile phones in your pocket," making Amazon the world's most comprehensive internet provider (omni-connectivity).
Apple has extended its free Emergency SOS service several times, but with Amazon owning the network, it's highly likely that by 2028 we'll see a shift to a subscription-based business model included in Amazon Prime or Apple One packages, offering capabilities beyond just sending emergency messages (such as making phone calls or browsing the internet on mountaintops).
This deal is a strong counterattack against SpaceX (Starlink)'s partnership with T-Mobile. Amazon is building the strongest alliance in the IT world: "Cloud + Retail (Amazon)" and "Hardware (Apple)" to counter Elon Musk's monopoly in the satellite industry.
Even with shareholder approval, this multi-billion dollar deal integrating two giants (Amazon + Apple) on national infrastructure will undoubtedly face intense scrutiny from the FCC and antitrust agencies in 2027.
Meet Luna The AI CEO Running a Real-World Store in San Francisco.
Source: Amazon
Amazon Acquires Globalstar for $10B+: A Bold Move to Dominate Direct-to-Device Satellite ConnectivityAmazon has officially announced a definitive agreement to acquire Globalstar Inc., a leading provider of Direct-to-Device (D2D) satellite services. Upon completion of the merger, Globalstar will be rebranded as Amazon Leo D2D, aiming to provide voice, text, and high-speed internet connectivity in areas currently beyond the reach of traditional cellular networks.
The $10 Billion Strategic Acquisition
The deal is valued at over $10 billion. Globalstar shareholders are offered a choice: $90 in cash per share or an exchange for Amazon stock at a ratio of 0.3210. While the formal shareholder meeting is pending, 58% of shareholders have already signed written consents, paving the way for the deal to close by 2027.
Securing the Apple Partnership
A critical component of this acquisition is Globalstar’s long-standing relationship with Apple. Since the iPhone 14, Apple has utilized Globalstar's network for its Emergency SOS via Satellite feature.
Immediately following the merger announcement, Amazon signed a separate agreement with Apple. Both giants have committed to maintaining the current satellite services for iPhone users while collaborating on expanding next-generation features. This effectively ends speculation about Apple’s future satellite provider and integrates Apple’s ecosystem into Amazon’s expanding space infrastructure.
The Road to 2028: Amazon Leo D2D
Amazon Leo D2D is scheduled to launch in 2028. Unlike current emergency-only services, Amazon plans to deploy a constellation of thousands of satellites to offer high-speed broadband directly to smartphones, rivaling SpaceX’s Starlink Direct-to-Cell capabilities.
The acquisition of Globalstar is a crucial piece of the puzzle for Project Kuiper (Amazon's satellite internet project). While Kuiper focuses on home satellite systems, Amazon Leo D2D will focus on direct connection to "mobile phones in your pocket," making Amazon the world's most comprehensive internet provider (omni-connectivity).
Apple has extended its free Emergency SOS service several times, but with Amazon owning the network, it's highly likely that by 2028 we'll see a shift to a subscription-based business model included in Amazon Prime or Apple One packages, offering capabilities beyond just sending emergency messages (such as making phone calls or browsing the internet on mountaintops).
This deal is a strong counterattack against SpaceX (Starlink)'s partnership with T-Mobile. Amazon is building the strongest alliance in the IT world: "Cloud + Retail (Amazon)" and "Hardware (Apple)" to counter Elon Musk's monopoly in the satellite industry.
Even with shareholder approval, this multi-billion dollar deal integrating two giants (Amazon + Apple) on national infrastructure will undoubtedly face intense scrutiny from the FCC and antitrust agencies in 2027.
Meet Luna The AI CEO Running a Real-World Store in San Francisco.
Source: Amazon
Comments
Post a Comment