Amazon plans $11.57B acquisition of Globalstar to expand satellite business

Amazon is making a significant push into the orbital connectivity market, an area currently led by SpaceX’s Starlink. On Tuesday, the company announced that it has reached an agreement to acquire satellite operator Globalstar for $11.57 billion in cash.

The deal, priced at $90 per share, will give Amazon control over Globalstar’s satellite operations, infrastructure, and spectrum licenses for mobile satellite services. This acquisition is expected to strengthen Amazon’s emerging satellite initiative, Amazon Leo, enabling it to expand into direct-to-device connectivity services ahead of its planned launch later this year.

The move follows recent comments by Amazon CEO Andy Jassy, who highlighted the growing list of customers for Amazon Leo. These include major names such as Delta Airlines, AT&T, Vodafone, Australia’s National Broadband Network, and NASA. In addition, the company recently unveiled a new satellite internet antenna designed for commercial aircraft, promising high-speed in-flight connectivity.

Amazon Leo is expected to operate a constellation of more than 3,200 satellites in low-Earth orbit. However, the project has encountered delays, with only around 200 satellites launched so far. Amazon has already requested an extension from the Federal Communications Commission to meet the requirement to place approximately 1,600 satellites into orbit by July this year.

By comparison, Starlink — operated by SpaceX — already has a much larger footprint, with more than 10,000 satellites in orbit, providing internet services across roughly 150 countries to both individual users and enterprise customers, including those in maritime and aviation sectors.

Globalstar currently operates more than 24 satellites in low-Earth orbit and has agreements in place to acquire over 50 additional satellites. The company is also working with SpaceX to launch replacement satellites for its existing constellation later this year.

As part of the broader agreement, Amazon has also reached a deal with Apple to continue supporting satellite-based connectivity features on devices like the iPhone and Apple Watch. Globalstar currently powers services such as emergency messaging, roadside assistance requests, and location sharing, which are available on iPhone 14 models and newer devices in selected regions.

Looking ahead, Amazon Leo is expected to roll out its own direct-to-device satellite communication system starting in 2028. This system will integrate with the company’s broader broadband and satellite infrastructure, forming a network of thousands of advanced low-Earth orbit satellites designed to support hundreds of millions of connected devices worldwide.