Amazon to Buy Globalstar in $11.6 Billion Deal to Expand Satellite Ambitions
The deal adds Globalstar’s satellites to Amazon’s orbit plans and supports a direct-to-device rollout from 2028.
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Amazon has agreed to acquire satellite communications firm Globalstar in a deal valued at about $11.57 billion, strengthening its push into space-based connectivity as competition in the sector intensifies.
The transaction will give Amazon access to Globalstar’s existing satellite network, adding about two dozen satellites to its current fleet of more than 200.
Amazon has been working toward deploying around 3,200 satellites in low Earth orbit by 2029, with a regulatory requirement to have about half in place by mid-2026.
The company is preparing to launch its own satellite internet services later this year. The addition of Globalstar’s infrastructure is expected to support those plans, particularly in the area of direct-to-device connectivity, which allows phones and other devices to connect to satellites without relying on traditional cellular towers.
Globalstar’s network is designed for low-data communication, often used in emergency services and areas with limited coverage. The companies said the acquisition would support Amazon’s plans to roll out direct-to-device services starting in 2028.
The deal comes as competition intensifies in the satellite internet sector, where companies are investing heavily to build global networks.
Starlink, operated by SpaceX, currently leads the market with around 10,000 satellites in orbit and more than 9 million users worldwide.
Under the terms of the agreement, Globalstar shareholders can choose to receive either $90 in cash or 0.3210 shares of Amazon stock for each share they hold.
The offer represents a premium of more than 31% compared with Globalstar’s share price before reports of the deal emerged.
Amazon said the total value of the transaction could vary depending on its share price before closing.
The deal is expected to be completed next year, subject to regulatory approvals, including from the US Federal Communications Commission.
The acquisition does not affect Globalstar’s existing relationship with Apple, which uses its satellite network to power features such as Emergency SOS and Find My on iPhones and Apple Watches.
Amazon said it has reached an agreement to continue supporting those services.
Apple previously invested about $1.5 billion in Globalstar to expand satellite-based communication capabilities.
Globalstar has also been working on expanding its network, with plans to increase its satellite count to more than 50 as part of a new system backed by Apple.
