Amazon Is Snatching Up Starlink Rival for $11B

Amazon is writing a mighty big check to more aggressively take on Elon Musk over space-based internet. The company will acquire Globalstar, the satellite operator behind Apple's emergency iPhone connectivity, in a cash-and-stock deal the companies value at about $10.8 billion, effectively snatching up Starlink's biggest current competitor, reports the Wall Street Journal. Reuters puts the purchase price at closer to $11.6 billion. The move is meant to accelerate Amazon's Leo satellite business, which lags far behind SpaceX's Starlink in hardware already in orbit—a few hundred Amazon satellites versus roughly 9,000 for Starlink, per the Journal.

Amazon plans to roll out its own direct-to-device service in 2028, pending regulatory sign-off, and has already inked an inflight WiFi deal with Delta, while Starlink currently serves United. Globalstar brings not just satellites but coveted global spectrum rights and an existing partnership with Apple, whose devices use its network for satellite messaging and emergency help. Under the agreement, Globalstar shareholders can choose $90 per share in cash or Amazon stock valued up to that amount, with the final price tied to Amazon's share performance until the deal closes, expected in 2027. The AP notes that Amazon shares jumped 2.6% after news of the deal, while Globalstar went up close to 9%.