Amazon has announced its acquisition of Globalstar for $90 per share, totaling $11.5 billion, marking a significant step in bolstering its low Earth orbit (LEO) satellite internet initiative. This move positions Amazon to better compete with SpaceX, as it aims to enhance its satellite network designed for high-speed internet delivery to various sectors, including consumers and governments.
The acquisition is expected to have immediate implications for both companies. Globalstar’s stock jumped over 9% in premarket trading, reflecting investor optimism about the deal, while Amazon’s shares rose approximately 1%. With over 240 satellites launched since last April, Amazon’s LEO project—now branded as Leo—continues to gain momentum, potentially reshaping the competitive landscape of satellite internet services.
For market professionals, this acquisition underscores the growing importance of satellite technology in the telecommunications sector, presenting opportunities for investment in companies involved in satellite infrastructure and related services.
Source: cnbc.com