What Amazon’s Globalstar Purchase Means for SpaceX

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Every now and then we get a reminder that big tech’s pockets are as deep as https://ocean.si.edu/planet-ocean/seafloor/mariana-trench">the Mariana Trench.

Amazon’s purchase of satellite firm Globalstar offers one of those reminders.

Despite spending $200 billion this year on capital expenditures for its AI expansion and committing $50 billion on an OpenAI investment, Amazon can still find a few loose coins in the couch to buy Globalstar. 

Amazon is paying about $4.6 billion in cash and issuing stock currently worth around $6.2 billion for the satellite firm.

For that, it gets to expand the offering of its yet-to-be-launched Leo broadband satellite service to include direct-to-cell capabilities.

That would help Leo compete with SpaceX’s Starlink, which already offers a limited mobile service through T-Mobile in the U.S. and other carriers overseas. 

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Amazon acquires Globalstar for $11.6bn