Amazon’s $11.6B Acquisition of Globalstar: A Challenge to SpaceX Starlink
Amazon made a significant announcement on Tuesday, revealing its agreement to acquire the satellite operator Globalstar for an estimated $11.57 billion. This strategic move is set to position Amazon as a strong competitor against Elon Musk’s SpaceX Starlink in the satellite internet market. The deal, which is valued at $90 per share in cash or stock, will provide Amazon’s Leo satellite network (formerly known as Project Kuiper) with critical infrastructure and spectrum licenses.
The acquisition encompasses Globalstar’s fleet of low-Earth orbit satellites, a ground station network that spans 24 global gateways, and mobile satellite service licenses authorized in over 120 countries. Amazon’s ambitious plan is to deploy direct-to-device connectivity services starting in 2028, with the long-term goal of operating thousands of satellites that will provide high-speed internet to consumers and enterprises worldwide.
In a noteworthy development, Amazon has also secured a separate agreement with Apple to continue powering satellite features on iPhone and Apple Watch devices. This includes Emergency SOS, Messages, Find My, and Roadside Assistance. It’s worth noting that Apple had previously invested $1.5 billion in Globalstar in 2024 and currently holds approximately 20% of the company.
This deal strategically positions Amazon to challenge SpaceX’s Starlink, which currently operates over 10,000 satellites in orbit and serves more than 9 million users. The transaction is expected to close in 2027, subject to regulatory approvals. Following the announcement, Globalstar shares surged more than 10%, while Amazon stock rose over 3%.
Source: CNBC