Amazon strikes $11.6 billion deal for Globalstar to boost satellite ambitions vs. rival Starlink

Amazon has agreed to acquire satellite operator Globalstar in a deal valued at approximately $11.6 billion, marking a major step in its push to expand its space-based connectivity services.

Under the terms announced Tuesday, Amazon will offer Globalstar shareholders $90 per share in cash or stock, representing a premium of nearly 117% compared to the company’s share price before takeover discussions became public. The transaction is expected to close in 2027.

The acquisition is central to Amazon’s strategy to scale its satellite network, recently rebranded as “Leo,” and to accelerate its entry into the emerging direct-to-device (D2D) market. This technology allows smartphones and other consumer devices to connect directly to satellites, bypassing traditional cellular infrastructure.

Amazon said it plans to launch D2D services by 2028, positioning itself in a fast-developing segment currently led by SpaceX through its Starlink network, as well as AST SpaceMobile.

A key element of the deal is the transition of Apple’s satellite-based emergency messaging services to Amazon’s network. Globalstar currently provides the underlying satellite connectivity for iPhone and Apple Watch emergency features, making Apple a potentially significant anchor customer for Amazon’s expanding platform.

Despite its ambitions, Amazon has lagged behind competitors. Starlink already operates thousands of satellites and serves millions of users globally, while Amazon’s constellation remains in early deployment, with around 200 satellites currently in orbit and a long-term target exceeding 7,000.

The Globalstar acquisition is expected to help Amazon overcome these limitations by integrating existing infrastructure, spectrum assets, and customer relationships. It also strengthens Amazon’s position in both consumer connectivity and enterprise applications, including aviation, where it recently secured an in-flight connectivity agreement with Delta Air Lines.

Market reaction to the announcement was mixed: Globalstar shares rose sharply, while Amazon’s stock saw modest gains. Meanwhile, competitors such as AST SpaceMobile declined, reflecting concerns over heightened competition.

Regulators appear cautiously supportive. U.S. Federal Communications Commission Chair Brendan Carr indicated that the deal could enhance competition in the nascent satellite communications market.

As satellite broadband demand accelerates—particularly in remote and underserved regions—the acquisition underscores intensifying competition to control the next generation of global connectivity infrastructure. With this move, Amazon is signalling its intent to become a major player in a market increasingly defined by scale, partnerships, and technological reach.