Amazon to buy satellite company Globalstar to compete with Musk's Starlink

Amazon has agreed to buy satellite operator Globalstar for about $11.6 billion - as part of an effort to build its own satellite infrastructure.

The tech giant offered Globalstar shareholders $90 in cash per share, which implies a 23.5% premium to the last closing price, or 0.32 shares of Amazon stock, the company said in a statement. The deal is expected to close in 2027.

Quotes of Amazon rose by 1.1% on the premarket in New York. Globalstar shares jumped 8.5%, trading in them was suspended due to the jump, Bloomberg reports.

Amazon is developing its low-Earth orbit satellite network, Amazon Leo, in an effort to compete with Elon Musk's SpaceX, notes Bloomberg. Meanwhile, Starlink already has more than 10 million active users and about 10,000 satellites in orbit, and its revenue is expected to exceed $9 billion this year.

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