Amazon announced that it has acquired Globalstar for $10.8 billion to expand its satellite internet services. Globalstar is known as a company operating a low Earth orbit (LEO) satellite network and providing global communication services. This acquisition will support Amazon's satellite network project known as Project Kuiper, later named Leo. Amazon plans to offer voice, data, and messaging services via satellite by 2028.
Additionally, Amazon is collaborating with Apple on satellite-connected devices for emergency messaging. Under this collaboration, Amazon's satellites will support the emergency messaging features of iPhone and Apple Watch devices. Amazon has not disclosed details about the partnership.
Last year, Amazon entered the satellite internet market by launching 27 satellites into orbit. This market is dominated by Elon Musk's SpaceX company with its Starlink service. Starlink provides high-speed satellite internet to millions of users worldwide. SpaceX's preparations for an initial public offering are ongoing, and the company's market value is estimated to be over $1 trillion.
Globalstar CEO Paul Jacobs stated that the merger with Amazon will accelerate innovations in digital connectivity. Amazon aims to provide faster and more reliable satellite internet service with this acquisition.