Amazon has agreed to acquire Globalstar for approximately $11.5 billion, aiming to strengthen its position in satellite communications and compete with SpaceX’s Starlink.
Through this acquisition, Amazon plans to accelerate its Project Kuiper initiative while expanding its presence in mobile connectivity and consumer technology markets. The company will gain access to Globalstar’s spectrum rights and technological infrastructure, and will integrate its existing 24 satellites into its own network to increase capacity.
While Starlink currently leads with a vast satellite fleet, this strategic move is expected to help Amazon close the gap. Globalstar plans to deploy 3,200 satellites into low Earth orbit by 2029, with regulatory requirements to reach half that number by 2027.
Globalstar’s technology is based on a “Direct-to-Device” (D2D) architecture, enabling direct satellite connectivity to mobile devices without relying on ground-based stations. This is particularly valuable in remote areas and emergency situations.
Under the deal, Globalstar shareholders will receive $90 per share or Amazon stock at a specified ratio. Following the announcement, Globalstar shares rose by 9%, while Amazon shares increased by 2.5%.
Additionally, Amazon has reached an agreement with Apple, committing to continue supporting satellite-based emergency and location services for iPhone and Apple Watch users. The acquisition is expected to be completed next year, pending regulatory approvals.
