Amazon has revealed its acquisition of Globalstar in a deal worth $11.57 billion, marking a significant move into satellite-based internet services to rival Elon Musk’s Starlink. This acquisition bolsters Amazon’s ambitions in low Earth orbit through its Amazon Leo program, providing expedited access to space-based connectivity. Globalstar is recognized for supporting Apple’s emergency satellite functions on iPhones and Apple Watches. The agreement ensures uninterrupted satellite support for Apple users, maintaining essential safety features. The timing of this acquisition coincides with SpaceX’s Starlink dominating the market with a substantial satellite fleet and millions of global users, setting a high standard for newcomers like Amazon.
Amazon has been steadily developing its satellite internet infrastructure to offer connectivity beyond traditional mobile networks. The company has already deployed over 200 satellites into orbit under its Amazon Leo initiative and plans to expand this network to approximately 3,200 satellites by 2029. Additionally, a regulatory mandate requires Amazon to launch a significant portion of its satellite constellation by July 2026, adding pressure to meet its deployment timeline.
With the acquisition of Globalstar, Amazon gains access to an existing network of roughly two dozen low Earth orbit satellites, providing an immediate boost to its direct-to-device plans. This strategy enables smartphones and other devices to connect directly to satellites without relying on terrestrial towers, enhancing coverage in areas with weak or unavailable terrestrial networks.
Despite the intense competition, particularly from SpaceX’s Starlink with around 10,000 satellites serving over nine million users worldwide, Amazon aims to bridge the gap swiftly by combining its infrastructure development with Globalstar’s system integration. This strategic approach focuses on enhancing connectivity in rural and remote markets globally.
Apple Inc. has been a key partner in Globalstar’s growth, leveraging its satellite network to power essential emergency features on supported iPhones and Apple Watches. Apple has invested approximately $1.5 billion in Globalstar to enhance its satellite capabilities. Following the acquisition, Amazon will continue to support these services, ensuring the continuity of existing iPhone satellite features while working on future enhancements. Apple users, particularly those with iPhone 14 and newer Apple Watch Ultra models, rely on Globalstar’s network for crucial safety tools in remote locations.
The agreement structure allows Globalstar shareholders to opt for $90 in cash or 0.3210 Amazon shares per stock, with a cash payout cap set at 40% of the total transaction value. The deal is anticipated to be finalized in 2027, pending regulatory approvals and key satellite deployment milestones. Once finalized, Globalstar will be integrated into Amazon’s broader satellite ecosystem, focusing on expanding direct-to-device communication and strengthening partnerships with mobile operators. The transition is designed to be seamless for Apple users while propelling Amazon into the competitive satellite communications landscape, shaping global connectivity.
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