On April 14, Amazon announced an agreement to acquire Globalstar, a leading mobile satellite services operator, in a deal valued at $11.57 billion.
According to Reuters, the transaction will bolster Amazon’s satellite ambitions through its Amazon Leo network, formerly known as Project Kuiper, positioning the tech giant to compete directly with Elon Musk’s Starlink in the rapidly expanding direct-to-device (D2D) satellite market.
The acquisition includes Globalstar’s existing satellite constellation, infrastructure, and crucial mobile satellite services (MSS) spectrum licenses with global authorizations. Amazon reported that the deal will enable the company to deploy its next-generation D2D satellite system beginning in 2028, with the full network expected to support hundreds of millions of customer endpoints worldwide.
Amazon Leo Direct-to-Device Expansion
Under the terms of the agreement, Globalstar shareholders can elect to receive either $90 in cash or 0.3210 shares of Amazon common stock for each share held. According to Reuters, the offer represents a premium of over 31% over Globalstar’s closing price on April 1. The transaction is expected to close in 2027, subject to regulatory approvals and achievement of specific deployment milestones.
A critical component of the deal involves Amazon’s new partnership with Apple. As reported by GeekWire, Amazon signed a long-term agreement to continue powering satellite features for iPhone and Apple Watch devices. This arrangement leverages Globalstar’s existing relationship with Apple, which invested approximately $1.5 billion in the satellite operator in 2024 for a 20% equity stake and secured rights to most of Globalstar’s network capacity. Current services including Emergency SOS via satellite, Find My location sharing, and roadside assistance will transition to Amazon Leo infrastructure.
The combined network will integrate Globalstar’s approximately two dozen existing satellites with Amazon’s own constellation, which currently consists of over 200 launched satellites. According to Amazon, the complete Amazon Leo system will ultimately comprise thousands of advanced satellites in low Earth orbit, supported by ground gateway antennas and dedicated fiber network infrastructure. The network will feature compact, high-performance antennas including Leo Nano, Leo Pro, and Leo Ultra models, with satellites manufactured by MDA Space.
“There are billions of customers out there living, traveling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” said Panos Panay, Senior Vice President of Devices & Services, Amazon. “By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places—keeping them connected to the people and things that matter most. We’re excited to support Apple users through the Leo D2D system, and look forward to working with mobile network partners to help extend coverage to every corner of the planet.”
Competition With Starlink Intensifies
The move represents Amazon’s most significant push to challenge SpaceX’s dominant Starlink, which currently operates more than 10,000 satellites and serves over 9 million subscribers. Amazon has set a target to deploy approximately 3,200 satellites in low Earth orbit by 2029, though the company faces a regulatory deadline requiring half of its constellation to be in place by July 2026.
Analysts noted the strategic importance of acquiring Globalstar’s licensed spectrum, which would be difficult for newer entrants to obtain. Armand Musey, President and Founder of Summit Ridge Group, stated that the acquisition allows Amazon to catch up on its direct-to-device spectrum position and leap ahead on D2D deployment. Austin Moeller, Director of Equity Research at Canaccord Genuity, noted that continued consolidation in the satellite sector is expected as companies seek to compete with SpaceX’s scale and virtually unlimited launch capacity.
The deal requires approval from the Federal Communications Commission, though FCC Chair Brendan Carr indicated the agency is “very open-minded” toward the acquisition. Following the announcement, Globalstar shares rose approximately 10%, while Amazon stock increased 3%.