Amazon has agreed to acquire the US satellite communications company Globalstar in a cash-and-stock deal valued at $90 per share. This strategic move aims to accelerate Amazon’s space-based internet ambitions and position the company as a competitor to Elon Musk’s Starlink. The offer has already garnered support from approximately 58 percent of Globalstar’s shareholders and is expected to close in 2027. Globalstar, which has a market capitalization of around $9 billion, operates a constellation of satellites that provide voice and data services.
Through this acquisition, Amazon will gain access to valuable spectrum rights and satellite infrastructure, which could expedite the deployment of its low Earth orbit (LEO) system, known as Project Kuiper. This network aims to deliver high-speed broadband to underserved and remote regions worldwide. Additionally, Apple, which holds a 20 percent stake in Globalstar, will integrate Amazon’s satellite services into future iPhone and Apple Watch models. This integration includes expanding emergency connectivity features, such as Emergency SOS, allowing users to send messages when outside traditional mobile coverage.
Panos Panay, Amazon’s senior vice president for devices and services, stated that the acquisition will help bridge the digital divide for billions of people living or operating in areas beyond the reach of conventional networks. Amazon’s LEO constellation, currently in development, is expected to consist of around 200 satellites, placing it in direct competition with Starlink’s existing network of over 10,000 satellites operated by SpaceX.
This deal comes amid growing speculation that SpaceX is preparing for a potential initial public offering (IPO) of Starlink, which could raise up to $75 billion—potentially the largest IPO in history. Amazon’s acquisition signals its intent to challenge SpaceX’s dominance in the satellite internet market while simultaneously expanding its broader technology ecosystem. With regulatory approvals still pending, this acquisition represents a significant step in Amazon’s push into satellite communications, highlighting the increasing commercial and strategic importance of global connectivity.
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