Big tech giant Amazon just sign one big deal wey go shake the satellite internet market. Dem agree to buy satellite company Globalstar for $1.57 billion. This move na serious one as Amazon dey try catch up with Elon Musk him own Starlink wey don already lead the race.
Shares of Globalstar jump well-well for market today. Dem rise more than 9% for premarket trading. This one come after the stock don already gain over 6% for the past two weeks as news about the deal begin dey fly around. The stock nearly double for value last year and don rise about 12% so far this year before this acquisition news even surface.
Amazon shares sef rise small, about 1% on Tuesday. The deal go give Amazon access to Globalstar network of two dozen satellites. This one na big boost for Amazon ambition to challenge SpaceX unit Starlink. Starlink currently get about 10,000 units for orbit and already serve more than nine million users globally.
Under the agreement, Globalstar shareholders go receive Amazon common stock for each share of Globalstar wey dem own. Amazon don dey work hard to ramp up him own network. Dem plan to deploy about 3,200 satellites for Earth low orbit by 2029. Half of that number must dey in place by July 2026 to meet regulatory deadline.
Right now, Amazon operate network of more than 200 satellites. Dem dey prepare to roll out satellite internet services later this year. This one go put dem for direct competition with Starlink wey don already establish strong presence.
Globalstar, wey dey based for Covington, Louisiana, popular as the service wey power Apple “Emergency SOS” feature. Dem operate about two dozen satellites for low-Earth orbit. Late last year, Globalstar talk say new Apple-backed network wey dey under development go expand that number to 54 satellites, including small number of backups.
The company offer voice, data, and asset-tracking services to customers across enterprise, government and consumer markets. Globalstar and Apple don sign agreement to continue powering satellite-based safety features like Emergency SOS and Find My for iPhone and Apple Watch users.
This acquisition expected to close next year, but e go depend on regulatory approvals. E also go require Globalstar to achieve specific satellite deployment milestones wey dem set. The space internet race don dey hot well-well as Amazon enter with full force.