Amazon announced on Tuesday that it has reached an agreement to purchase the US telecommunications satellite company Globalstar, aiming to expand its space-based internet infrastructure and compete with Elon Musk's Starlink.

The company will offer a cash-and-stock deal valued at $90 for Globalstar shareholders, which has a market capitalization of approximately $9 billion, as reported by the Financial Times earlier this month.

Founded by Jeff Bezos, the tech and e-commerce giant is developing its Amazon Leo network, which will provide satellite-based internet connectivity to users around the globe.

Stay updated with the latest news. Follow KT on WhatsApp channels.

"There are billions of customers out there living, traveling, and operating in areas that existing networks cannot reach, and we initiated Amazon Leo to help close that gap," stated Panos Panay, Amazon's senior vice president for devices and services.

Approximately 58 percent of Globalstar's shareholders have already accepted the offer, which is anticipated to finalize in 2027.

As part of the agreement, Apple, which holds a 20 percent share in Globalstar, will begin utilizing Leo for satellite services with its iPhones and Apple Watches, including the Emergency SOS feature.

Leo, with around 200 satellites currently in orbit, aims to compete with Musk's SpaceX, which operates the Starlink service with 10,000 satellites.

The acquisition of Globalstar comes amid widespread speculation that Musk is preparing for an initial public offering (IPO) of SpaceX shares, which could potentially raise a staggering $75 billion, making it the largest IPO in history.