FCC approves Amazon Leo’s $11.57 billion Globalstar acquisition

The Federal Communications Commission, the agency that regulates US communications, said on October 27 that it had approved Amazon Leo’s $11.57 billion deal to acquire satellite communications company Globalstar.^[1]

The approval moves the acquisition a step closer to completion; the report gives no closing date or confirmation that the deal has closed.^[1]

FCC approval reduces regulatory uncertainty around the acquisition. If the deal closes, Amazon Leo could bring Globalstar’s satellite operations under its ownership and coordinate investment and services across the combined business.^[1] Rivals could then face a larger competitor, while any lower costs or improved services would depend on integration; the report provides no estimates of those benefits.^[1]

Impact

• Satellite communications servicesNeutral

  Amazon Leo moves closer to gaining Globalstar’s operations and potentially coordinating the two businesses’ investment. Other satellite providers face possible competitive pressure, depending on whether the deal closes and how the combined business operates.^[1]