Key insights
- Amazon's acquisition of Globalstar to enhance its satellite network and provide direct-to-device services signals increased competition and innovation in the satellite communication sector. The partnership with Apple for Emergency SOS via satellite on iPhones and Apple Watches could drive adoption of satellite-based services and positively impact both AMZN and AAPL, though the overall market impact on US equities is moderate.
https://www.aboutamazon.com/news/company-news/amazon-globalstar-apple
Amazon is to acquire Globalstar, a provider of D2D satellite services. From the press release: "Today Amazon.com, Inc. and Globalstar, Inc. announced that they have entered into a definitive merger agreement under which Amazon will acquire Globalstar, enabling Amazon Leo to add direct-to-device (D2D) services to its low Earth orbit satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks. In addition, Amazon and Apple announced an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch^(1), including Emergency SOS via satellite. The new capabilities are part of Amazon’s long-term vision for space-based connectivity, and Amazon plans to work with mobile network operators (MNOs) and additional partners to deliver on that vision and extend reliable, high-speed connectivity to customers, no matter where they are in the world."