Amazon confirms the acquisition of satellite operator Globalstar

Amazon has confirmed that the company will acquire satellite operator Globalstar for $11.57 billion (€9.8bn). With this acquisition Amazon can offer satellite D2C service and compete with Elon Musk’s Starlink.

As per the agreement, Globalstar will continue providing emergency satellite connectivity to Apple, including support for select iPhone models. Its existing fleet of more than 20 satellites will be integrated into Amazon’s low Earth orbit (LEO) network. Notably, Apple had invested around $1.5 billion in Globalstar in 2024 to support its expansion and currently holds a 20% stake in the company.    

The pre-Globalstar scheme for Amazon Leo covered the eventual launch of 3,236 satellites and for a service to start in 2028. The deal, priced at approximately $90 per share and a premium of about 31% for Globalstar shareholders, is expected to be finalised by 2027, with approval from the FCC widely anticipated.

A statement from Amazon said, “Today Amazon.com, Inc. and Globalstar, Inc. announced that they have entered into a definitive merger agreement under which Amazon will acquire Globalstar, enabling Amazon Leo to add direct-to-device (D2D) services to its low Earth orbit satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks. In addition, Amazon and Apple announced an agreement for Amazon Leo to power satellite services for iPhone and Apple Watc1, including Emergency SOS via satellite. The new capabilities are part of Amazon’s long-term vision for space-based connectivity, and Amazon plans to work with mobile network operators (MNOs) and additional partners to deliver on that vision and extend reliable, high-speed connectivity to customers, no matter where they are in the world.”