Amazon has announced a merger agreement to buy satellite operator Globalstar for about $11.6 billion, aiming to strengthen its Leo satellite network for direct-to-device services. The deal includes an agreement with Apple to provide satellite connectivity for iPhones and Apple Watches. The transaction, expected to close in 2027, positions Amazon to compete more effectively with SpaceX's Starlink.
Amazon revealed the acquisition on Tuesday, stating it will acquire Globalstar's satellite operations, infrastructure, assets, and Mobile Satellite Service spectrum licenses. Globalstar, based in Louisiana, currently operates 24 low-Earth orbit satellites and plans to expand its fleet. The deal offers Globalstar shareholders $90 in cash per share or 0.3210 shares of Amazon stock capped at $90 per share, with the total value estimated between $10.8 billion and $11.6 billion depending on Amazon's stock price. Completion awaits regulatory approval, including from the Federal Communications Commission. Amazon Leo, formerly Project Kuiper, has about 250 satellites in orbit and must deploy 1,600 by July 2026 per FCC rules, though Amazon has requested an extension. Panos Panay, Amazon's senior vice president of devices and services, said the acquisition will help deliver internet to billions beyond existing networks. Amazon plans to launch direct-to-device services in 2028, offering higher spectrum efficiency than legacy systems. The agreement builds on Globalstar's existing partnership with Apple, which holds a 20% stake since November 2024 and uses the service for iPhone 14 and later models, plus Apple Watch Ultra 3, for Emergency SOS, messaging, roadside assistance, and location sharing. Greg Joswiak, Apple's senior vice president of worldwide marketing, noted the companies' track record and commitment to vital satellite features. Amazon will become the primary provider for these Apple devices. FCC Chairman Brendan Carr expressed openness to the deal on CNBC, viewing it as aligning with U.S. leadership in direct-to-cell technology. He aims for multiple major operators in the market, alongside Starlink and AST SpaceMobile.
