"Amazon targets Musk's Starlink"...Amazon acquires Globalstar for 16 trillion won

"Amazon targets Musk's Starlink"...Amazon acquires Globalstar for 16 trillion won.

Amazon has acquired a satellite communications company to target the satellite internet market led by Elon Musk's SpaceX.

Both companies announced on the 14th (local time) that Amazon would acquire Globalstar, a satellite communications company, to expand its low-earth orbit satellite network, 'Amazon LEO'.

Through this acquisition, Amazon will add 24 Globalstar satellites to its existing satellite network of approximately 200 satellites.

Furthermore, from 2028, it will be able to launch next-generation D2D (Direct-to-Device) services that directly connect satellites with mobile devices such as smartphones without going through ground base stations.

Amazon also signed an additional contract to continue supporting Apple's satellite-based emergency messaging service, which Globalstar has been providing.

Panos Panay, Amazon's Senior Vice President (SVP) of Devices & Services, emphasized, "Billions of people live, travel, and work in areas where traditional communication networks do not reach. We launched Amazon LEO to bridge this gap," adding, "Through Globalstar's proven expertise and robust infrastructure, customers will be able to experience faster and more stable services in more regions."

Globalstar shareholders will receive either $90 in cash per share held or Amazon stock of equivalent value.

Considering that Globalstar's total outstanding shares are 128.59 million, the total acquisition amount reaches $11.57 billion (approximately 17 trillion won).

This represents a premium of 117% compared to Globalstar's market capitalization at the end of October, before Amazon's acquisition rumors circulated.

This acquisition has received written consent from 58% of Globalstar shareholders and is expected to be finalized next year after regulatory approval.

Amazon's acquisition of Globalstar is intended to catch up with SpaceX, a leader in the satellite communication sector.

While SpaceX currently possesses a satellite network of 10,000 satellites, Amazon's satellite count is still only around 200.

Amazon had initially applied for and received permission to launch 1,600 new satellites by July of this year, but has recently faced difficulties in building its own satellite network, including requesting a waiver from the U.S. Federal Communications Commission (FCC).