Amazon said on the 14th that it will acquire satellite communications company Globalstar to expand its Low Earth Orbit (LEO) Satellite Network "Amazon LEO."
Through this acquisition, Amazon will add 24 Globalstar satellites to its existing network of about 200 satellites.
Starting in 2028, it can also launch a next-generation D2D (Direct-to-Device) service that directly links satellites to mobile devices such as smartphones without passing through ground stations.
Amazon also signed an additional contract to continue supporting Apple's satellite-based emergency message service that Globalstar has provided.
Panos Panay, Amazon senior vice president (SVP) of devices and services, said, "Billions of people live, travel and work in places beyond the reach of existing communications networks. We launched Amazon LEO to bridge that gap."
He also emphasized, "With Globalstar's proven expertise and solid foundation, customers will be able to experience faster and more reliable service in more regions."
Globalstar shareholders will receive $90 in cash per share they hold or Amazon stock of equivalent value. Given that Globalstar has 128.59 million shares outstanding, the total acquisition price comes to $11.57 billion (about 17 trillion won).
That represents a 117% premium over its market capitalization at the end of October, before Amazon's acquisition talks surfaced.
The acquisition has received written consent from 58% of Globalstar shareholders and is expected to be completed next year after regulatory approval.