The Amazon Globalstar acquisition represents an $11.6 billion deal that marks a significant expansion of Amazon’s satellite connectivity operations. The deal includes Globalstar’s existing satellite infrastructure, spectrum licenses, and global authorizations, which will support Amazon’s Leo satellite business and direct-to-device services.
This acquisition enables Amazon Leo to enhance connectivity offerings for consumer, enterprise, and government customers. Amazon currently operates 200 satellites in orbit with plans to deploy 3,200 by 2029, meeting Federal Communications Commission requirements to have approximately half in place by July 2026.
Beginning in 2028, Amazon Leo will deploy its own next-generation direct-to-device satellite system. The company stated this system will offer substantially higher spectrum efficiency than existing systems, translating to faster speeds and improved performance for customers.
Deal Structure and Timeline
Globalstar stockholders can choose to receive $90 in cash per share or 0.3210 shares of Amazon common stock, capped at $90 per share. The transaction is expected to close in 2027, subject to regulatory approval and Globalstar achieving certain satellite deployment milestones.
“The deal with Globalstar will give our customers more reliable and faster satellite services,”
Panos Panay, Senior Vice President of Devices & Services at Amazon
Apple Partnership and Satellite Services
In a parallel agreement, Amazon will provide satellite connectivity for iPhone and Apple Watch devices. Apple has been a long-term Globalstar partner, having invested more than $1 billion in the satellite company. The existing partnership enables users to text emergency services, send messages, request roadside assistance, and share locations via satellite.
Amazon stated it will continue providing these services and collaborate on future satellite applications. The arrangement represents a continuation of Apple’s existing relationship with Globalstar while integrating Amazon’s expanded satellite infrastructure.
Competitive Positioning
Luke Pearce, principal analyst at CCS Insight, said the deal gives Amazon a significant advantage in providing satellite services to smartphones. The Amazon Globalstar acquisition combined with Amazon’s Leo broadband expansion and AWS offerings strengthens its competitive position against SpaceX’s Starlink service.
SpaceX had also been rumored to pursue a deal to acquire Globalstar. The transaction consolidates satellite connectivity capabilities under Amazon’s control, positioning the company to serve millions of customers through its unified network combining fixed and mobile satellite services.
Future Network Expansion
Amazon plans to integrate first and second generation Leo systems into a unified network. The complete Leo network will include thousands of advanced satellites in low Earth orbit, designed to support millions of customers globally. This infrastructure expansion represents a major commitment to satellite-based connectivity services across consumer and enterprise segments.
