Amazon Agrees to Buy Globalstar for Satellite Expansion
The company says the deal will help it add direct-to-device services and compete in satellite internet.
Amazon said on Tuesday that it will buy Globalstar in an $11.57 billion deal aimed at expanding Amazon's satellite network.
Globalstar brings existing satellite operations, communications infrastructure, and spectrum licenses that can support direct-to-device services. That means Amazon could connect phones and other devices even in remote places where ground networks do not reach.
The acquisition strengthens Amazon's effort to build out its own low Earth orbit satellite business before a broader commercial launch later this year.
Industry analysts say the purchase increases pressure in the fast-growing satellite market, where Amazon is trying to catch up with Elon Musk's much larger Starlink system.