Amazon to Acquire Globalstar in $11.5 Billion Deal to Strengthen Satellite Ambitions

Amazon has agreed to acquire satellite communications firm Globalstar in a deal valued at approximately $11.57 billion, marking a major step in its effort to compete with SpaceX’s Starlink network in the rapidly growing satellite connectivity market.

Expanding Amazon’s Satellite Footprint

The acquisition will add Globalstar’s existing constellation of roughly two dozen satellites to Amazon’s developing low Earth orbit (LEO) network, which currently includes more than 200 satellites.

Amazon plans to deploy around 3,200 satellites by 2029, with roughly half required to be operational by a key regulatory deadline in mid-2026. The company is also preparing to launch its satellite internet services later this year.

Strengthening Direct-to-Device Capabilities

A key strategic advantage of the deal lies in Globalstar’s Direct-to-Device (D2D) technology, which enables mobile devices to connect directly to satellites without relying on terrestrial cellular towers.

This capability is critical for:

• Emergency communications
• Connectivity in remote or underserved areas
• Resilient communication infrastructure

Amazon expects the acquisition to accelerate its D2D deployment timeline, with services anticipated to roll out by 2028.

Competing with Starlink’s Scale

Despite the acquisition, Amazon faces a significant challenge in catching up with Starlink, which already operates a constellation of around 10,000 satellites and serves more than 9 million users globally.

Starlink is also advancing its own D2D capabilities through partnerships with telecom providers such as T-Mobile.

“Amazon has been falling behind Starlink on satellite broadband,” said Armand Musey of Summit Ridge Group. “Acquiring Globalstar strengthens its spectrum position and accelerates its D2D ambitions.”

Apple Partnership to Continue

Globalstar currently powers satellite-based services for Apple, including Emergency SOS and Find My features on iPhones and Apple Watches.

Amazon confirmed it will maintain this partnership. Apple previously invested approximately $1.5 billion in Globalstar in 2024, securing a 20% equity stake and supporting the expansion of its satellite-enabled services.

Globalstar is also working on an expanded satellite network backed by Apple, expected to grow to 54 satellites.

Industry Consolidation Intensifies

The deal reflects broader consolidation across the satellite communications sector as companies race to compete with SpaceX’s scale and launch capabilities.

“Given SpaceX’s dominance and launch capacity, consolidation in the satcom market is likely to continue,” said Austin Moeller of Canaccord Genuity.

Deal Structure and Timeline

Under the agreement, Globalstar shareholders can choose between $90 per share in cash or Amazon stock, representing a premium of more than 31% over the company’s pre-announcement share price.

The transaction is expected to close next year, pending regulatory approvals, including from the Federal Communications Commission, and the achievement of certain deployment milestones.

A Strategic Bet on Space Connectivity

With this acquisition, Amazon is making a significant bet on the future of satellite-based connectivity—positioning itself to compete more aggressively in a market expected to play a critical role in global communications infrastructure.