Washington DC [US], April 15: Amazon plans to expand its satellite internet business by purchasing satellite company Globalstar, aiming to compete with Elon Musk's Starlink, the two companies jointly announced in Seattle on Tuesday.
"The new capabilities are part of Amazon's long-term vision for space-based connectivity, and Amazon plans to work with mobile network operators and additional partners to deliver on that vision and extend reliable, high-speed connectivity to customers, no matter where they are in the world," they said in a statement.
Amazon pointed to billions of customers beyond the reach of existing networks and said it had started Amazon Leo to help reach them.
Amazon is offering Globalstar shareholders either $90 in cash per share or 0.3210 shares of Amazon stock up to the value of $90 per share. The offer represents a premium of more than 23 percent on Monday's closing prince and a total of more than $11 billion.
Starlink already has thousands of satellites in orbit around the earth, offering airlines internet connectivity among other services.
Amazon's Leo satellite network, previously known as Project Kuiper, is still under development.
Source: Qatar Tribune
