Amazon Takes on SpaceX with $11.6B Globalstar Acquisition
Amazon has made a significant stride in the satellite internet space race. On Tuesday, the tech giant announced its agreement to acquire satellite operator Globalstar for approximately $11.57 billion. This strategic move aims to bolster its Amazon Leo network and pose a direct challenge to Elon Musk’s SpaceX Starlink dominance.
As per the agreement, Amazon will pay $90 per share in cash or stock to acquire Globalstar’s entire satellite operations. This includes the infrastructure and, crucially, its mobile satellite spectrum licenses with global authorizations. The acquisition will empower Amazon to construct its own direct-to-device satellite system. The company anticipates starting deployment in 2028, enabling standard mobile devices to connect to satellites without the need for ground towers.
Amazon’s deal comes at a critical time as it faces a July 2026 Federal Communications Commission deadline. The company is required to launch approximately 1,600 satellites to maintain its license. As of now, Amazon has around 241 satellites in orbit, while Starlink operates over 10,000 satellites, serving more than 9 million users worldwide.
In a strategic twist, Amazon has also inked an agreement with Apple. The tech giant will continue providing satellite connectivity for iPhone and Apple Watch features, taking over Globalstar’s existing partnership that powers Apple’s Emergency SOS feature. The transaction, already approved by Globalstar stockholders holding 58% of voting power, is expected to close in 2027, pending regulatory approvals.
Source: CNBC