Amazon Strikes $11.57 Billion Deal To Acquire Globalstar
Fez– Amazon has agreed to acquire Globalstar in a deal valued at $11.57 billion, marking a significant move to strengthen its position in the fast-growing satellite internet market and challenge Starlink.
The transaction will add roughly two dozen satellites to Amazon’s existing constellation of more than 200, as the company works to scale its Project Kuiper network.
According to Reuters, despite the expansion, Amazon still faces a steep climb to rival Starlink, which has already deployed a constellation of around 10,000 satellites and serves more than nine million users worldwide.
Amazon is targeting a total of about 3,200 satellites in low-Earth orbit by 2029, with a regulatory deadline requiring roughly half of that fleet to be operational by July. The company is also preparing to launch its satellite internet services later this year.
Globalstar brings a complementary capability to the deal. Its network is designed for low-data, direct-to-device (D2D) connectivity, allowing mobile devices to connect via satellite without relying on ground-based towers.
This technology is particularly suited for emergency services and coverage in remote or underserved areas. Amazon said the acquisition would support the rollout of its own D2D services starting in 2028.
The move comes as competition intensifies across the satellite communications sector, where major technology players are investing heavily to secure a share of future connectivity infrastructure. Analysts say the acquisition could help Amazon close a strategic gap.
“Amazon has been trailing Starlink in satellite broadband,” said Armand Musey of Summit Ridge Group. “This deal strengthens its position in the direct-to-device spectrum and could accelerate deployment.”
Meanwhile, SpaceX continues to consolidate its lead. Starlink remains central to SpaceX’s business, contributing an estimated 50% to 80% of its revenues, while benefiting from the company’s unmatched launch capacity and rapid deployment pace.
The agreement also reflects a broader trend of consolidation in the sector, as companies seek scale to compete with SpaceX’s vertically integrated model.
Under the terms of the deal, Globalstar shareholders will have the option to receive $90 in cash or 0.3210 shares of Amazon stock for each share held, a premium of more than 30% compared with the stock’s level before acquisition talks became public.
Shares in Globalstar rose sharply following the announcement, while Amazon also posted gains in early trading.
The acquisition is expected to close next year, subject to regulatory approval, including from the Federal Communications Commission, as well as the completion of certain satellite deployment milestones.
Separately, the deal preserves Globalstar’s existing relationship with Apple, which has invested heavily in the satellite operator.
Amazon confirmed it will continue supporting satellite-based safety features such as Emergency SOS and location services for Apple devices.
While the transaction strengthens Amazon’s technical and spectrum position, the scale advantage remains firmly with Starlink, insisting that catching up in the satellite race will require sustained investment, execution, and time.
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