Amazon Acquires Globalstar for $11.6 Billion to Enhance Satellite Infrastructure
Amazon finalizes agreement to buy satellite firm Globalstar for $11.6 billion
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Amazon.com Inc. has finalized a deal to acquire satellite operator Globalstar Inc. for approximately $11.6 billion, offering shareholders a choice between cash or stock. This acquisition aims to strengthen Amazon's satellite infrastructure and expand its direct-to-device market by 2028, enhancing connectivity options for users.
- 01Amazon's acquisition of Globalstar is valued at approximately $11.6 billion.
- 02Shareholders can choose $90 in cash or 0.32 Amazon shares, reflecting a 117% premium over Globalstar's recent trading price.
- 03The deal will bolster Amazon's satellite infrastructure and expand its direct-to-device market by 2028.
- 04Globalstar's stock surged 11% following the announcement, while Amazon's shares rose 3%.
- 05Amazon Leo aims to deploy a constellation of over 7,700 satellites, enhancing connectivity in remote areas.
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Amazon.com Inc. has finalized an agreement to acquire Globalstar Inc. for $11.6 billion, significantly enhancing its satellite infrastructure. Under the terms, Globalstar shareholders can opt for $90 in cash per share or 0.32 Amazon shares, representing a 117% premium over its trading price in late October. This acquisition is part of Amazon's strategy to enter the direct-to-device (D2D) market by 2028, utilizing satellite constellations for mobile connectivity. Notably, Apple Inc. will migrate its emergency satellite messaging suite to Amazon Leo, the rebranded broadband satellite project. Following the announcement, Globalstar's stock surged 11%, while Amazon's shares increased by 3%. In contrast, competitor AST SpaceMobile Inc. saw a 10% decline in its stock. Amazon Leo currently has around 200 test satellites in orbit, with plans for a massive constellation of over 7,700 satellites. This acquisition positions Amazon to compete with industry leaders like SpaceX and AST SpaceMobile in the growing satellite broadband market.
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This acquisition may lead to improved satellite connectivity for users, especially in remote areas, enhancing access to essential services and communication.
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