Amazon’s bet on satellites is expensive and faces fierce competition. It also just might work

Amazon is making a big move to advance its ambitions in outer space — one that is pricey and pits it against a formidable incumbent. It could also end up a huge winner for the e-commerce and cloud giant. The Seattle-based company said this month it plans to acquire satellite operator Globalstar for $90 per share in a cash-and-stock deal worth about $11.6 billion. The deal, expected to close in 2027, will bolster Amazon's budding internet-from-space service called Amazon Leo, which is slated to begin commercial broadband service in mid-2026. It also helps Leo's standing against the dominant player in the satellite internet space, SpaceX, led by Elon Musk. The move reinforces Amazon's commitment to the expensive and extensive task of building out a satellite internet service — a pursuit that, for years, has given some investors pause as they questioned the price tag and the time to reap the rewards. It used to be called Project Kuiper and originated in 2019 when Amazon founder Jeff Bezos was still CEO. Leo has the potential to "be a huge business out of nowhere," Jim Cramer said in reaction to the Globalstar deal. "It's a sudden pillar. This will be something that we're going to be talking about." He added, "It flips from being something that [makes you say] I'm tired of hearing the losses, to I think it's going to be big gains here." Globalstar will be the second-largest acquisition in Amazon's history, behind Whole Foods, for $13.7 billion in 2017 . …