00:00I know that you've also been reporting that Amazon is in talks to possibly acquire a satellite company, Global Star.
00:06What did you learn about that possible deal?
00:08Yes, the deal officially announced tomorrow, and it's part of Amazon's ambition to really be a leader in providing satellite
00:14cell service, basically, or satellite broadband service.
00:18SpaceX, Starlink, is obviously the true leader in that.
00:21Amazon has had a bit more trouble getting their effort quite literally off the ground.
00:26You know, they haven't been able to launch as many satellites into orbit as SpaceX.
00:29What this deal does is it gives them really valuable spectrum that Global Star has, which basically means Amazon's now
00:35going to be able to offer something called direct device,
00:38which is, you know, if you're on a hike or you're driving and you suddenly lose service, you'll be able
00:43to beam into Global Star or Amazon now's satellites and do text, talk, data.
00:49So this is something that really helps them kind of play a bit of catch up with SpaceX, but, you
00:55know, for them to really catch up, they'll have to launch some more satellites.
00:57By the way, I love that. They literally haven't gone off the ground.
01:00I feel like every single day when we hear about an Amazon deal, it's usually something around AI.
01:05So you add this to their arsenal. I mean, how much money do they have that they can keep spending?
01:10What are valuations like? Is this easy for them?
01:12Can they keep issuing bonds in markets, allowing them to finance these types of activities from Amazon?
01:17Well, I mean, and Amazon isn't that acquisitive.
01:20When you think about it, this is only their second biggest deal ever.
01:23It's their biggest since they bought Whole Foods almost a decade ago.
01:26But, you know, there are a few companies that are as big and as diversified as Amazon who have someone
01:31like Jeff Bezos, you know, multi-billionaire, obviously.
01:34And we heard that this process was actually really competitive.
01:37Last year, we reported that SpaceX also took a look at Global Star.
01:41At the time, we were hearing Global Star wanted at least $10 billion to sell.
01:44And now Amazon struck this deal for $11.6 billion.
01:48So clearly, you know, they're doubling down.
01:50They really want to be a leader.
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