Amazon has announced a landmark $11.6 billion acquisition of Globalstar, a move poised to significantly bolster its satellite internet ambitions and directly challenge Elon Musk’s Starlink. This strategic acquisition aims to expand Amazon’s network capabilities and accelerate its entry into the burgeoning satellite-based connectivity market.
Amazon’s acquisition of Globalstar marks a significant step in its efforts to establish a robust satellite internet service. The deal will integrate Globalstar’s existing satellite network, comprising approximately two dozen satellites, with Amazon’s own growing constellation. This move is crucial for Amazon as it races to deploy its planned network of around 3,200 satellites by 2029, with a significant portion needing to be operational by July 2026 to meet regulatory requirements.
A key aspect of the acquisition is the enhancement of Amazon’s Direct-to-Device (D2D) capabilities. Globalstar’s network is specifically designed for reliable, low-data connections directly to mobile devices, eliminating the need for traditional cellular towers. This technology is vital for emergency services and providing connectivity in remote areas. Amazon anticipates leveraging this technology to deploy its own D2D services starting in 2028. This positions Amazon to compete directly with services like Starlink Mobile, which is also developing D2D offerings.
The satellite internet market is increasingly competitive, with SpaceX’s Starlink currently leading the pack with over 10,000 satellites and more than nine million users. Amazon’s acquisition of Globalstar is seen as a strategic move to close the gap and gain a stronger foothold in the sector. Industry analysts suggest that consolidation is likely to continue as companies strive to compete with SpaceX’s scale and rapid deployment capabilities.
Globalstar shareholders will have the option to receive $90 in cash or 0.3210 shares of Amazon common stock for each Globalstar share they own. This offer represents a premium of over 31% compared to Globalstar’s closing price prior to the announcement of deal discussions. The acquisition is expected to be finalized in 2027, subject to regulatory approvals, including that of the Federal Communications Commission (FCC). FCC Chair Brendan Carr has indicated a “very open-minded” approach to the deal, recognizing its potential to foster competition in the direct-to-cell services market.
In conjunction with the Globalstar acquisition, Amazon has also secured a deal with Apple to continue providing satellite connectivity for iPhone and Apple Watch features, such as Emergency SOS. Apple had previously invested significantly in Globalstar, taking a stake in the company in 2024 to enhance its satellite infrastructure. This ongoing partnership underscores the importance of satellite technology for mobile device safety and connectivity.