Prime Highlights
- Amazon explores deal to buy Globalstar to expand satellite internet plans.
- Move aims to compete directly with SpaceX’s Starlink network.
Key Facts
- Globalstar provides low earth orbit satellite services for voice, data, and tracking.
- Amazon plans a large satellite network with thousands of satellites.
Background
Amazon is discussing a possible deal to buy satellite company Globalstar as it grows its low-earth-orbit satellite business. The move helps Amazon build a stronger position in the fast-growing space internet market and compete with SpaceX and its Starlink service.
Globalstar’s shares rise sharply in premarket trading, showing strong investor interest. The Louisiana-based company operates low-earth orbit satellites and offers voice, data, and asset tracking services to businesses, governments, and consumers. In the market, it stands at a value of about 8.8 billion dollars.
Talks between Amazon and Globalstar continue, but several issues remain under discussion. One key challenge involves Apple, which owns a 20 percent stake in Globalstar. This requires Amazon to work closely with Apple before finalising any deal.
Amazon is building its own satellite network, now called Leo, which includes a planned group of about 3,200 satellites. Around 180 satellites are already in orbit. The company targets customers across industries, including enterprises, government agencies, and individuals.
The effort places Amazon in direct competition with Starlink, a major satellite internet service run by SpaceX. Starlink operates more than 9,500 satellites and serves millions of users worldwide. It also supports business operations and government services.
Experts say the satellite internet sector is expanding quickly. Amazon’s possible deal with Globalstar highlights its plan to grow faster and narrow the gap with leading players in this market.
