Amazon is betting on Globalstar to close the gap with Starlink, the satellite internet service provided by Elon Musk’s SpaceX.
The e-commerce giant founded by Jeff Bezos has announced the acquisition of satellite operator Globalstar for $90 per share, in a deal valued at approximately $11.57 billion.
Globalstar’s shares jumped more than 9%, while Amazon’s stock gained over 2%. Globalstar’s market capitalization has nearly quadrupled over the past year, reaching about $9.4 billion. Over the last year, the stock has risen about 230% amid rumors of a possible acquisition. Last October, Bloomberg reported that the satellite telecommunications company was considering a sale and had initiated preliminary talks with Musk’s SpaceX.
The acquisition allows Amazon Leo, the space-based internet service launched by the Seattle tech giant, to accelerate its challenge to SpaceX. For now, Elon Musk’s satellite internet division makes SpaceX the world’s largest satellite operator.
All the details.
WHY AMAZON TARGETED THE AMERICAN SATELLITE OPERATOR GLOBALSTAR
Under the agreement, Amazon stated it will acquire Globalstar’s satellite operations, infrastructure, and assets, including certain spectrum licenses with global authorizations. Globalstar’s new satellites and existing fleet will operate alongside Amazon’s network.
Amazon is expanding its low Earth orbit (LEO) satellite constellation, Amazon Leo, aiming to compete with Elon Musk’s SpaceX, whose rapidly growing Starlink division has over 10 million active users and about 10,000 satellites in orbit (half of all satellites in orbit).
Thus, acquiring Globalstar’s current constellation of 24 LEO satellites, its ground station network spanning 24 global gateways, and its licensed spectrum in over 120 countries will provide Amazon with an immediate operational base that years of internal development could not replicate quickly enough, Capacityglobal argued earlier this month.
WHERE AMAZON LEO STANDS
As Bloomberg points out, Amazon is behind its goal to enhance coverage with over 7,700 satellites. In January, Amazon requested an extension from the Federal Communications Commission (FCC) to meet the deadline requiring it to launch about 1,600 satellites by July 2026.
So far, the company founded by Bezos has launched 212 satellites, a number still far below the more than 10,000 active satellites managed by SpaceX. The tech giant intends to expand the Project Kuiper constellation, recently renamed Amazon Leo, reaching 500 satellites by 2026 and 3,600 in the coming years, positioning itself in competition with Starlink.
In April 2022, Amazon signed contracts for 38 launches with ULA; 18 launches with the European company Arianespace; and 12 launches with Blue Origin, with an option for 15 additional launches with the private company owned by Amazon founder Jeff Bezos.
According to the Financial Times, Amazon aims to have about 700 satellites in space by mid-year but has indicated that launch capacity shortages are slowing service development.
THE BOOST PROVIDED BY GLOBALSTAR’S SATELLITE NETWORK
Globalstar could accelerate Amazon’s efforts because it already operates a functioning satellite network, said John Davies, analyst at Bloomberg Intelligence.
Globalstar’s satellite network is designed for reliable, low-data-consumption connections directly to mobile devices, known as Direct-to-Device (D2D). This technology eliminates the need for devices to connect to terrestrial cellular towers, making it crucial for powering emergency services and providing connectivity in areas with limited cellular coverage.
According to the companies’ joint statement, the deal will help Amazon implement D2D starting in 2028.
THE NUMBERS OF THE US COMPANY
Founded in 1991 as a joint venture between Qualcomm and Loral, Globalstar launched its first satellites into low Earth orbit in 1998.
By the end of 2025, Globalstar had nearly 800,000 subscribers to its mobile satellite services, reports Bloomberg. The company reported annual revenue of $273 million in its latest annual results, a 9% increase over 2024. Operating profit was $7.4 million in 2025, after a slight loss the previous year, the FT notes. The US satellite operator reached a market capitalization of about $9 billion.
THE PARALLEL DEAL WITH APPLE
Finally, Amazon signed an agreement with Apple to continue providing satellite security services, such as Emergency SOS and Find My, for iPhone and Apple Watch users.
Cupertino’s giant invested $1.5 billion in Globalstar in 2024, acquiring a 20% stake. As part of the agreement, Globalstar committed to reserving 85% of its network capacity for the iPhone maker to send satellite messages outside cellular coverage.
