Amazon will buy Globalstar for $11.57 billion in an effort to expand its satellite business

Amazon is moving into the orbital mobile connectivity market currently dominated by Elon Musk’s Starlink company. The company said Tuesday it has agreed to buy satellite company Globalstar, known for powering Apple’s “Emergency SOS” feature, for $11.57 billion in cash.

The $90-per-share deal will net all of Globalstar’s satellite operations, infrastructure and mobile satellite service spectrum licenses, enabling the larger company to flesh out its nascent satellite business, Amazon Leo, with direct-to-device services ahead of its launch later this year.

The announcement comes just days after Amazon CEO Andy Jassy Described Amazon Leo’s client list includes Delta Airlines, AT&T, Vodafone, the Australian National Broadband Network and NASA. Company on Monday too Show A new satellite internet antenna is intended for commercial aircraft that promises high-speed internet during flights.

The company is scheduled to launch more than 3,200 satellites into low Earth orbit, although it has faced delays and has so far only launched about 200 satellites. Amazon eventually had to ask the FCC about it extends It is a deadline that requires about 1,600 satellites in orbit by July of this year.

In comparison, the much larger Starlink is currently in operation More than 10,000 satellitesthrough which it provides Internet services in about 150 countries to retail as well as corporate users, including the maritime and aviation industries.

Globalstar has more than 24 satellites in low Earth orbit, and has agreements in place to acquire more than 50 new satellites. The company also has an agreement with SpaceX to launch replacement satellites for its current constellation this year.

In addition to this deal, Amazon said it had entered into an agreement with Apple to continue providing satellite communication services for the iPhone and Apple Watch. Globalstar currently offers satellite services such as emergency text messaging, roadside assistance requesting, and location sharing, available on Apple’s iPhone 14 and later devices in select regions.

Amazon Leo is also scheduled to deploy its own direct satellite system from 2028, which will integrate with existing broadband and satellite systems. The company said it aims to develop a network of “thousands of advanced low-Earth orbit satellites” that will “support hundreds of millions of customer endpoints around the world.”