Amazon has agreed to acquire satellite operator Globalstar in a deal valued at approximately $11.6 billion, adding an established low-Earth orbit fleet, globally licensed spectrum and a flagship Apple partnership to its Amazon Leo satellite broadband network as it seeks to close the gap with Elon Musk's Starlink.
Under the terms of the merger agreement, Globalstar shareholders can elect to receive $90 per share in cash or 0.321 shares of Amazon stock, with stock consideration capped at $90 per share.
The offer represents a premium of nearly 117% over Globalstar's share price from late October, before Bloomberg reported the company was exploring a sale.
The deal is expected to close in 2027 subject to regulatory approval, and no shareholder vote is required: Thermo Funding, which controls 57.6% of Globalstar's voting power, has already consented to the transaction.
Alongside the acquisition, Amazon and Apple announced a separate agreement for the Amazon Leo network to power satellite connectivity features on iPhone and Apple Watch, including Emergency SOS via satellite, Messages via satellite, Find My and Roadside Assistance, services previously powered by Globalstar's infrastructure.
Apple invested approximately $1.5 billion in Globalstar in 2024, acquiring a 20% equity stake and securing 85% of the company's network capacity for its satellite features, making it by far Globalstar's largest customer and a significant party to the transaction.
Amazon said it will continue supporting existing iPhone and Apple Watch models using Globalstar's current and upcoming constellation, which is being built by Canadian satellite manufacturer MDA Space, and will work with Apple on future services running on the expanded Leo network.
The strategic logic of the deal centres on spectrum as much as satellites: Globalstar holds globally harmonised mobile satellite service spectrum licences across L-band, S-band and Band 53/n53, a scarce and tightly regulated asset that would be extremely difficult for a newer entrant to assemble independently.
Combining that spectrum with Amazon Leo's planned constellation will enable direct-to-device connectivity, allowing mobile network operators to extend voice, text and data services to customers beyond the reach of terrestrial cellular coverage.
Amazon has launched around 200 satellites to date and has yet to begin consumer service, targeting a commercial launch of its broadband offering later in 2026.
Starlink, by contrast, operates approximately 10,000 satellites and serves more than 9 million subscribers globally, illustrating the scale of the catch-up task Amazon faces even with Globalstar's assets folded in.
Globalstar currently operates around two dozen satellites in low-Earth orbit and is in the middle of an Apple-backed expansion that will grow its constellation to 54 satellites.
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The deal adds to a wave of consolidation and investment in commercial space infrastructure, as large technology companies seek to build vertically integrated connectivity platforms capable of serving enterprise, government and consumer customers in areas beyond the reach of ground-based networks.
Globalstar shares rose 9.75% and Amazon gained 4.28% following the announcement, reflecting investor enthusiasm for the strategic rationale on both sides.
The recap
- Amazon to acquire Globalstar, a satellite broadband operator.
- Panel said satellite low‑orbit broadband "is a booming business."
- Discussion linked deal to lower valuations and corporate cash.