Amazon to Acquire Globalstar, Expand LEO Satellite Network

(Seattle, Washington & Covington, Louisiana) Jeff Bezos’ Amazon, Inc. (NASDAQ: AMZN) and Globalstar (NASDAQ: GSAT) announced today (Apr. 14) that stye have entered into a definitive merger agreement under which Amazon will acquire Globalstar, enabling Amazon Leo to add direct-to-device (D2D) services to its low Earth orbit (LEO) satellite network and extending cellular coverage to customers beyond the reach of terrestrial networks.

Rendering of a satellite in sapce courtesy of Globalstar.

Additionally, Amazon and Apple (NASDAQ: AAPL) announced an agreement for Amazon Leo to power satellite see services for iPhones and Apple Watches, including Emergency SOS via satellite.

“There are billions of customers out there living, traveling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” said Panos Panay, Senior Vice President of Devices & Services, Amazon. “By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places—keeping them connected to the people and things that matter most. We’re excited to support Apple users through the Leo D2D system, and look forward to working with mobile network partners to help extend coverage to every corner of the planet.”

Per today’s press release from the companies, “the new capabilities are part of Amazon’s long-term vision for space-based connectivity, and Amazon plans to work with mobile network operators (MNOs) and additional partners to deliver on that vision and extend reliable, high-speed connectivity to customers, no matter where they are in the world.”

Globalstar shares (GSAT) are up more than 10% intra-day at $80.77 and AMZN is up 3.6% at $248.50, as of 11.54am ET.

** Not investment advice; neither The FLY Report nor FLYJETS – nor any associated individual – is a registered investment adviser.