BY Fraser TennantLooking to bolster its nascent satellite business, US multinational technology company Amazon.com is to acquire mobile satellite services operator Globalstar in a transaction valued at $11.57bn.Under the terms of the definitive merger agreement, Globalstar stockholders will receive for each share of Globalstar common stock they own either $90 in cash or 0.3210 shares of Amazon common stock with a value capped at $90 per share.Globalstar’s satellite network is designed for reliable, low-data connections directly to mobile devices or direct to device (D2D) technology that removes the need for devices to connect to ground-based cellular towers, making them crucial in powering emergency services and delivering connectivity in areas with limited cellular coverage.The deal enables Amazon Leo – a low-Earth orbit satellite network established by Amazon in 2019 – to add D2D services to its low Earth orbit satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks. In addition to the agreement with Globalstar, Amazon and Apple signed an agreement to provide satellite connectivity for current and future iPhone and Apple Watch features.With the new capabilities part of its long-term vision for space-based connectivity, Amazon plans to work with mobile network operators and additional partners to deliver on that vision and extend reliable, high-speed connectivity to customers.“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,” said Panos Panay, senior vice president of devices & services at Amazon. “We are 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.”Globalstar stockholders holding approximately 58 percent of the combined voting power of the outstanding shares of Globalstar common stock have approved the transaction.“For more than 30 years, Globalstar has executed on this vision through sustained, long-term investment in technological innovation, operational excellence and development of globally harmonised spectrum across both satellite and terrestrial applications,” said Paul Jacobs, chief executive of Globalstar. “We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime.” The transaction is expected to close in 2027, subject to the satisfaction of certain closing conditions, including receipt of regulatory approvals and the achievement by Globalstar of certain replacement satellite milestones.Mr Jacobs concluded: “The combination will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world.”News: Amazon to buy satellite firm Globalstar in $11.57 billion deal to take on Musk’s Starlink
