Amazon signs deal with SpaceX to launch three missions for Kuiper satellite project due to shareholder pressure

Amazon eventually signed a deal for three Falcon 9 launches from SpaceX to deploy its ambitious Kuiper project, which involves building a massive satellite internet network. This deal came as a surprise, as Amazon had not previously considered SpaceX as a potential partner for the first launch contracts, which caused shareholders to be dissatisfied and file a lawsuit.

Falcon 9 rockets are scheduled to launch in mid-2025. The Kuiper project includes the launch of 3,236 satellites into low Earth orbit, of which half must be retired by 2026 in accordance with the requirements of the US Federal Communications Commission (FCC).

Amazon’s ambitious plans include agreements for up to 83 launches with Arianespace, Blue Origin, and United Launch Alliance, which could be worth several billion dollars.

However, Amazon’s shareholders, including Cleveland Bakers and the Teamsters Pension Fund, expressed their dissatisfaction with this decision, believing that the board of directors approved these deals too hastily without considering SpaceX as a potential partner.

The lawsuit states that Amazon’s management did not consider SpaceX as a possible partner for Kuiper launches, despite their reputation and reliability in this area. This caused surprise and questions about the choice of companies to implement the project.

After that, apparently, the board of directors did start negotiations with SpaceX.

SpaceX is the world’s largest, most reliable, and at the same time inexpensive space launch operator.

Source techcrunch
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