Amazon has announced a major $11.57 billion deal to acquire satellite communications company Globalstar. The move is aimed at strengthening Amazon’s growing satellite internet business and creating stronger competition for Elon Musk’s Starlink, which currently dominates the market.
Amazon Expands Satellite Ambitions
The acquisition gives Amazon access to Globalstar’s satellite network, infrastructure, spectrum licenses, and direct-to-device technology. This will help Amazon accelerate its satellite connectivity plans and improve services in remote and underserved areas around the world.
Direct-to-Device Services by 2028
Globalstar’s technology allows smartphones and other mobile devices to connect directly with satellites without relying on traditional cell towers. Amazon plans to use this capability to launch direct-to-device satellite services by 2028. Such services could support emergency messaging, remote communication, and better mobile coverage in hard-to-reach locations.
Amazon’s Satellite Network Expansion
Amazon plans to deploy around 3,200 satellites into low-Earth orbit by 2029 as part of its satellite project. The company is also working to meet regulatory deadlines that require a portion of the network to be operational by mid-2026.
Starlink Still Leads the Market
Although Amazon is making a major push, Starlink remains the clear leader in satellite internet. SpaceX currently operates more than 10,000 satellites and serves over nine million users worldwide. Starlink has also partnered with telecom companies such as T-Mobile for mobile satellite connectivity services.
Apple Partnership to Continue
Despite Amazon acquiring Globalstar, the company said Globalstar’s existing partnership with Apple will remain in place. Globalstar currently powers Apple’s Emergency SOS via satellite feature on supported iPhone devices.
Shareholder Offer and Deal Approval
Under the agreement, Globalstar shareholders can choose to receive $90 per share in cash or equivalent Amazon stock. The transaction still requires regulatory approval from the U.S. Federal Communications Commission (FCC) before completion.
Market Reaction Positive
Following the announcement, shares of Globalstar rose sharply in premarket trading. Amazon and other related space technology companies also saw positive investor reaction after the news.
