Mentioned:
Amazon is making a multi billion dollar bet on something new: satellites in low Earth orbit.
What’s happening:
- Amazon (NASDAQ: AMZN) has entered into a deal to acquire satellite operator Globalstar (NASDAQ: GSAT)
By the numbers:
- Amazon will pay $90.00 USD per share in cash to shareholders of Globalstar as part of the new acquisition or allow Globalstar shareholders to convert their equity into Amazon stock
Why it matters:
- This is the single largest acquisition that Amazon has ever done for a mobile satellite company
Going deeper:
- Globalstar currently has more than forty satellites operating in low Earth orbit and delivers data and connectivity to more than a hundred countries worldwide
- Amazon has publicly stated they will integrate Globalstar’s operations and licenses into their Amazon Leo network and expand Globlstar’s existing commercial deals for connectivity
The intrigue:
- Apple (NASDAQ: AAPL) is a major investor in Globalstar and owns roughly 20% of the company
