Amazon signed a definitive agreement to acquire satellite operator Globalstar for approximately $11.6 billion. The cash-and-stock transaction strengthens Amazon’s Leo low Earth orbit satellite network. This acquisition enables Amazon to challenge Elon Musk’s Starlink through new direct-to-device services.
Amazon gains access to Globalstar’s existing satellite fleet and licensed MSS spectrum. Apple currently maintains a 20% stake in Globalstar. Under the agreement, Amazon Leo will power satellite services for the iPhone and Apple Watch, including the Emergency SOS feature.
Globalstar stockholders will receive up to $90 per share in the deal. The purchase represents Amazon’s second-largest acquisition following its purchase of Whole Foods. The transaction is expected to close in 2027 pending regulatory approvals. This move expands Amazon’s long-term vision for global connectivity beyond traditional cellular networks.