Amazon to Acquire Globalstar for $11.6B, Spurs Satellite Chip Demand
Amazon will acquire Globalstar for $11.6 billion at $90 per share or stock, gaining radio frequency licenses to launch a direct-to-device service in 2028 and intensifying competition with Starlink in a satellite communications market set to double to $200 billion. The deal could boost demand for Qualcomm’s satellite modem chipsets.
1. Deal Overview
Amazon will acquire Globalstar for $11.6 billion, offering $90 per share in cash or 0.32 Amazon shares. The transaction grants Amazon radio frequency licenses critical for satellite-to-mobile connectivity and represents its second-largest acquisition after Whole Foods.
2. Market Outlook
The satellite communications market is projected to grow to $200 billion, driven by rising demand for broadband connectivity in underserved areas. Competition between Amazon’s upcoming service and SpaceX’s Starlink could reshape supplier dynamics.
3. Service Launch Timeline
Amazon plans to launch its direct-to-device satellite service by 2028, enabling connectivity straight to mobile phones without relying on traditional cell towers. The subsidiary rebranded as Amazon Leo will host Apple’s emergency messaging service.
4. Implications for Qualcomm
Qualcomm, a leading supplier of satellite modem chipsets, stands to benefit from increased device-level connectivity demand. Partnerships or design wins in Amazon’s network could boost its wireless solutions segment.