Amazon has announced plans to acquire satellite operator Globalstar through an $11.6 billion transaction, intensifying competition with Elon Musk’s Starlink in the rapidly expanding satellite communications sector.
The transaction, revealed Tuesday, prices Globalstar at $90 per share — representing a premium exceeding 31% over its April 1 closing value and approximately 117% above its October pricing.
Globalstar investors may select between $90 cash per share or 0.3210 shares of Amazon stock. Cash payments are limited to 40% of the overall transaction value.
Amazon stock advanced 3.8% to $249.02 following the announcement. Globalstar jumped 9.6% to $79.91. MDA Space, serving as Globalstar’s principal contractor, gained 9%. AST SpaceMobile, a direct-to-device competitor, tumbled nearly 11% to $88.57.
The transaction is projected to finalize in 2027, contingent upon FCC regulatory clearance and achieving specific deployment targets.
This represents Amazon’s second-largest corporate acquisition, trailing only its $13.7 billion Whole Foods transaction from 2017.
Globalstar maintains just a few dozen operational satellites currently, but the satellite count isn’t the strategic priority. The core asset is spectrum — FCC-authorized radio frequencies essential for delivering connectivity directly to standard smartphones.
“Amazon has now repeatedly claimed that their satellite system will offer better service than what’s out there now,” said Caleb Henry of Quilty Space. Amazon CEO Andy Jassy “would not be able to make a claim like that without first acquiring spectrum.”
Amazon’s Leo broadband constellation currently maintains approximately 200 satellites in orbit. The company targets over 7,700 satellites ultimately, with regulatory requirements mandating roughly 1,600 orbital satellites by July.
Utilizing Globalstar, Amazon intends to introduce a direct-to-device offering in 2028 — enabling mobile phone connectivity via satellite without requiring cellular infrastructure.
Starlink, by contrast, currently operates 10,000 satellites providing service to approximately 10 million subscribers worldwide. The company is advancing its own direct-to-device technology through collaboration with T-Mobile.
A significant element of this transaction: Apple’s Emergency SOS satellite capability, presently operating on Globalstar infrastructure for iPhones and Apple Watch devices, will shift to Amazon Leo.
Apple invested $1.5 billion in Globalstar during 2024 and maintains approximately a 20% ownership position. The company hasn’t yet addressed questions regarding this stake following the acquisition.
Amazon has additionally secured Delta Air Lines as a Leo customer for in-flight connectivity. Starlink maintains a more extensive airline client base including United, Southwest, British Airways, and Emirates.
FCC Chair Brendan Carr stated Tuesday he is “very open-minded” to the deal, characterizing it as a potential competition driver in an emerging market.
“Amazon has been falling behind Starlink on satellite broadband. Acquiring Globalstar allows them to catch up on their D2D spectrum position, and leap ahead on D2D deployment,” said Armand Musey of Summit Ridge Group.
The transaction valuation, Amazon noted, will vary based on its stock price until closing. Globalstar’s equity was valued at approximately $10.8 billion as of April 9.
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