BY COMFORT OGBONNA
Amazon announced plans to acquire Globalstar in a deal valued at approximately $11.57 billion, marking a major step in its effort to expand its satellite communications business and compete more directly with SpaceX and its Starlink network.
The acquisition underscores the growing race among technology companies to dominate the satellite-based connectivity market, which is increasingly seen as a critical component of global communications infrastructure. While companies are investing heavily in this space, Amazon still faces a significant challenge in catching up with Starlink, which already operates a network of around 10,000 satellites. With the addition of Globalstar, Amazon will incorporate roughly two dozen satellites into its existing constellation of more than 200.
Amazon has been steadily building its satellite network as part of its long-term strategy. The company aims to deploy about 3,200 satellites into low Earth orbit by 2029, with nearly half of that number required to be operational before a key regulatory deadline in July. It is also preparing to launch its satellite internet services later this year, signaling a broader push into global broadband connectivity.
Globalstar brings specialized capabilities to the deal, particularly in Direct-to-Device (D2D) communication technology. This system enables mobile devices to connect directly to satellites without relying on traditional ground-based cellular towers. The technology is especially valuable in emergency situations and in remote or underserved areas where conventional network coverage is limited. Following the acquisition, Amazon plans to begin deploying D2D services by 2028.
Despite Amazon’s ambitions, Starlink remains a dominant force in the sector, serving more than 9 million users worldwide. The network, operated by SpaceX, provides high-speed broadband through dedicated user terminals and is also advancing its own D2D capabilities through partnerships with telecom providers such as T-Mobile. The scale and rapid deployment pace of Starlink continue to set a high benchmark for competitors.
Industry analysts view Amazon’s move as a strategic effort to close the gap. By acquiring Globalstar, the company strengthens its position in the D2D spectrum and accelerates its ability to deploy satellite-based services. The deal also reflects a broader trend of consolidation within the satellite communications sector, as companies seek the scale and resources needed to compete effectively with SpaceX.
The market responded positively to the announcement, with Globalstar shares rising sharply and Amazon’s stock also gaining ground. Additionally, MDA Space, a key contractor for Globalstar’s next-generation satellite constellation, saw its shares increase following the news.
The deal also intersects with earlier investments by Apple, which committed approximately $1.5 billion to Globalstar in 2024 to support the expansion of satellite-based communication services for iPhones. That investment included a 20% equity stake in Globalstar and helped fund the development of a new network expected to expand to 54 satellites, including backup units.
Amazon’s move comes at a time when SpaceX continues to solidify its leadership position. The company has been launching Starlink satellites at an aggressive pace, building the largest satellite constellation in the world. Starlink is estimated to contribute between 50% and 80% of SpaceX’s overall revenue, highlighting its importance to the company’s business model.
Under the terms of the agreement, Globalstar shareholders will have the option to receive either $90 in cash or 0.3210 shares of Amazon common stock for each share they own. The final value of the transaction will depend on Amazon’s share price at the time of closing. As of early April, Globalstar’s equity was valued at around $10.8 billion.
The acquisition is expected to be finalized next year, pending regulatory approvals and the achievement of certain satellite deployment milestones by Globalstar. Approval from the Federal Communications Commission will also be required, though early indications suggest regulators are open to reviewing the transaction.
Overall, the deal represents a significant milestone in Amazon’s push to become a major player in the satellite communications industry, setting the stage for intensified competition in the years ahead.
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