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:: SpaceX
Amazon on Tuesday said it would acquire satellite company Globalstar for about 11.5 billion dollars, as the online behemoth looks to compete with Elon Musk's rival satellite firm Starlink.
The announcement sent shares of both companies skyward, with Amazon gaining 3.5 percent and Globalstar soaring 11%.
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Amazon has been working to ramp up its satellite network by deploying about 3,200 satellites in Earth's low orbit by 2029 - roughly half of which should be in place by July due to a regulatory deadline.
The online giant is also preparing to roll out its satellite internet services later this year.
:: SuperSharp Space Systems
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Tech companies are pouring in billions of dollars to capture the lucrative market for satellite-based connectivity.
:: SpaceX
But it will be a tall order to match Starlink's 10,000-unit-strong network.
Through the deal, Amazon adds Globalstar's two dozen satellites to its existing network of more than 200.
Globalstar's satellite network is designed for reliable, low-data connections directly to mobile devices, or what is otherwise known as Direct-to-Device, or D2D.
:: NOAA
The technology removes the need for devices to connect to ground-based cell towers, making them crucial in powering emergency services and delivering connectivity in areas with limited cellular coverage.
The companies said the deal will help Amazon deploy D2D beginning in 2028.
:: SpaceX
Meanwhile, Starlink already serves more than 9 million users globally. The SpaceX unit, which provides high-speed broadband through user terminals, is also developing D2D services through partnerships with telecom operators such as T-Mobile.
Amazon's move comes closely on the heels of SpaceX moving forward with its plan for a stock market listing.
Starlink contributes roughly 50% to 80% of revenue generated by SpaceX.
