Amazon has announced a definitive agreement to acquire satellite operator Globalstar for approximately $11.6 billion, marking the company’s most aggressive move yet to accelerate its Amazon Leo low Earth orbit satellite network. The deal gives Amazon access to Globalstar’s fleet of operational satellites, globally licensed mobile satellite spectrum, and — critically — an existing commercial relationship with Apple that powers Emergency SOS via satellite on hundreds of millions of iPhones. Amazon and Apple have simultaneously signed a new agreement ensuring that iPhone and Apple Watch satellite features will transition to the Amazon Leo network, while Amazon plans to deploy its own next-generation direct-to-device satellite system beginning in 2028. The acquisition positions Amazon as a formidable challenger to SpaceX’s Starlink in the rapidly expanding satellite connectivity market.
Key Overview
- Deal value: Approximately $11.6 billion at $90 per share in cash or Amazon stock
- Expected close: 2027, subject to FCC regulatory approval and satellite deployment milestones
- Apple agreement: Amazon Leo will power satellite services for iPhone and Apple Watch, including Emergency SOS, Messages, Find My, and Roadside Assistance via satellite
- Direct-to-device (D2D) timeline: Amazon Leo’s own next-generation D2D satellite system is slated for deployment beginning in 2028
- Competitive context: SpaceX’s Starlink operates over 10,000 satellites with 9 million+ subscribers; Amazon Leo has approximately 240 satellites in orbit
- FCC response: Chairman Brendan Carr said the agency is “very open-minded” to the deal
- Market reaction: Globalstar shares surged 9.6% to an 18-year high; Amazon stock climbed 3.8%
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A Strategic Leap Into Direct-to-Device Connectivity
When Amazon first unveiled plans for a constellation of thousands of low Earth orbit internet satellites in 2019, the initiative — then known as Project Kuiper — was framed as a way to bring affordable broadband to underserved communities. Seven years later, with the programme rebranded as Amazon Leo in November 2025 and a commercial launch targeted for mid-2026, the company has dramatically expanded its ambitions. The acquisition of Globalstar represents a decisive pivot: Amazon is no longer content to deliver broadband through dedicated terminals alone. It now intends to connect directly to the smartphones already in billions of pockets worldwide.
Globalstar, headquartered in Covington, Louisiana, is a pioneering mobile satellite services operator that has been providing satellite communications for more than three decades. The company currently operates roughly two dozen satellites in low Earth orbit and holds globally licensed mobile satellite spectrum — a regulatory asset that is notoriously difficult and time-consuming for newcomers to obtain. By acquiring these spectrum rights outright, Amazon effectively sidesteps years of regulatory proceedings that would otherwise be required to secure equivalent frequencies.
Under the terms of the merger agreement, Globalstar stockholders will elect to receive either $90 in cash or 0.3210 shares of Amazon common stock per share, with a value capped at $90. Cash elections are subject to a proration mechanism that caps aggregate cash payments at 40% of total shares. The transaction consideration may be adjusted downward by up to $110 million if Globalstar does not achieve certain operational milestones related to its HIBLEO-4 replacement satellite programme. Stockholders controlling roughly 58% of Globalstar’s combined voting power have already approved the transaction by written consent.
Inheriting Apple’s Satellite Roadmap
Perhaps the most strategically significant dimension of the Globalstar acquisition is the Apple relationship that comes with it. Apple first introduced Emergency SOS via satellite with the iPhone 14 in late 2022, backed by a $450 million investment in Globalstar’s infrastructure. The feature — which enables users to text emergency services, share their location, and request roadside assistance when they are outside cellular and Wi-Fi coverage — has since been credited with saving numerous lives in remote areas.
Apple deepened its commitment in 2024 with a $1.5 billion investment that gave it an approximately 20% ownership stake in Globalstar and funded an expansion of the satellite fleet from 24 to 54 spacecraft, with new satellites being manufactured by MDA Space and launched by SpaceX. The satellite features have expanded beyond emergencies to include Messages via satellite, Find My via satellite, and Roadside Assistance, available on iPhone 14 and later models as well as the Apple Watch Ultra.
As part of the Amazon-Globalstar transaction, Amazon and Apple have signed a new agreement under which Amazon Leo will continue to support the satellite services that iPhone and Apple Watch users have come to rely on. Greg Joswiak, Apple’s Senior Vice President of Worldwide Product Marketing, described the arrangement as a natural extension of the companies’ existing collaboration, noting that the Emergency SOS service has helped rescue people in dire situations — from a stranded scout troop in British Columbia to a woman whose car rolled down a cliff in Colorado.
The Apple deal effectively neutralises what had been growing industry speculation that Apple might eventually switch its satellite services to Starlink. Instead, Apple’s satellite future is now tied to Amazon Leo — a partnership that gives Amazon a built-in user base of hundreds of millions of iPhone owners.
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Amazon Leo’s Deployment Challenges
The Globalstar acquisition arrives at a moment when Amazon Leo faces significant pressure to accelerate its satellite deployment. The FCC authorised Amazon to deploy 3,236 satellites in 2020, requiring the company to launch half of the constellation — roughly 1,618 satellites — by July 30, 2026. As of April 2026, Amazon has launched approximately 240 production satellites, a fraction of the target.
In January, Amazon formally requested a 24-month extension from the FCC, seeking to push the halfway-point deadline to July 2028. The company cited a shortage of available launch vehicles as the primary constraint, noting that its satellite manufacturing facility in Kirkland, Washington, is capable of producing up to 30 satellites per week — far outpacing the rate at which rockets can carry them to orbit. Amazon has booked more than 100 launches across United Launch Alliance, Arianespace, Blue Origin, and — ironically — SpaceX itself, but launch availability has not kept pace with manufacturing output.
In a partial win, the FCC in February approved Amazon’s request to deploy an additional 4,500 second-generation and polar orbit satellites, bringing its total authorised constellation to more than 7,700 spacecraft. However, the agency has not yet ruled on the deadline extension request for the first-generation constellation. Amazon expects to have about 700 satellites in orbit by the end of July 2026 and maintains that it will meet the final 2029 deadline for the full first-generation fleet.
Meanwhile, the enterprise beta programme for Amazon Leo launched on April 8, 2026, with partners including Verizon, AT&T, Vodafone, JetBlue, and NASA. CEO Andy Jassy’s annual shareholder letter confirmed mid-2026 as the target window for broader commercial availability. The service offers three terminal tiers — Leo Nano, Leo Pro, and Leo Ultra — with the highest-end option delivering speeds up to 1 Gbps.
The SpaceX Rivalry Intensifies
Amazon’s acquisition of Globalstar must be understood against the backdrop of an intensifying rivalry with Elon Musk’s SpaceX. Starlink has built a commanding lead in the satellite internet market, operating more than 10,000 satellites and serving over 9 million subscribers globally. SpaceX has the crucial advantage of controlling its own launch cadence through its reusable Falcon 9 rockets and the under-development Starship vehicle, enabling it to deploy satellites at a pace that no competitor can currently match.
SpaceX has also been aggressively building its own direct-to-device capabilities. In September 2025, the company struck a $17 billion deal with EchoStar to acquire 50 MHz of mid-band spectrum, followed by an additional $2.6 billion spectrum purchase in November. Armed with this spectrum, SpaceX has filed with the FCC to launch up to 15,000 next-generation direct-to-cell satellites and is targeting speeds of up to 150 Mbps for the upgraded service — a dramatic leap from the current 4 Mbps text-and-emergency capability it provides through its partnership with T-Mobile.
The Globalstar deal is Amazon’s answer to SpaceX’s spectrum consolidation. Industry analyst Armand Musey of Summit Ridge Group noted that the acquisition allows Amazon to catch up on its D2D spectrum position and potentially leap ahead on D2D deployment. However, analysts caution that the fundamental bottleneck remains launch capacity. Gregory Radisic, a lecturer at Bond University, warned that even with Globalstar’s assets, the gap between Amazon and SpaceX is “structural, not just numerical” unless Amazon can solve its deployment speed challenges.
A Three-Player D2D Market Takes Shape
FCC Chairman Brendan Carr has signalled his support for the emerging competitive landscape. In an interview following the deal announcement, Carr said the agency is taking an “all gas, no brakes” approach to the space economy and described a healthy three-player direct-to-cell market — comprising SpaceX, Amazon, and AST SpaceMobile — as beneficial for American consumers and U.S. technological leadership.
The direct-to-device segment represents a transformative evolution in satellite communications. Rather than requiring specialised terminals or dishes, D2D technology enables standard mobile phones to connect directly to satellites when terrestrial cellular coverage is unavailable. This has obvious applications for emergency services and disaster response, but the commercial potential extends much further — to rural broadband extension, maritime and aviation connectivity, IoT applications, and remote workforce communications.
Amazon’s planned Leo D2D system, expected to begin deployment in 2028, will use Globalstar’s mobile satellite spectrum and integrate with both the first-generation and second-generation Leo broadband constellations. Amazon claims the system will offer substantially higher spectrum efficiency than legacy direct-to-cell architectures, translating into faster speeds and better performance for end users. The complete Amazon Leo network is designed to include thousands of advanced satellites with capacity to support hundreds of millions of customer endpoints worldwide.
Market Reaction and Broader Implications
The market responded decisively to the announcement. Globalstar shares jumped 9.6% to reach an 18-year high of $89.20, while Amazon stock advanced 3.8%. MDA Space, Globalstar’s principal satellite contractor, also gained 9%. On the other side of the ledger, AST SpaceMobile — a competing player in the direct-to-device space — fell nearly 11% as investors recalibrated the competitive landscape.
The transaction represents Amazon’s second-largest acquisition ever, trailing only the $13.7 billion purchase of Whole Foods in 2017. Combined with the more than $10 billion Amazon has already invested in its Leo satellite constellation, the Globalstar deal underscores the scale of capital Amazon is willing to commit to becoming a major force in space-based connectivity.
Beyond the direct competitive dynamics with SpaceX, the acquisition has significant implications for efforts to close the digital divide globally. Amazon’s multibillion-dollar investment in Leo is creating jobs in engineering, manufacturing, and operations across the United States, Europe, and other regions. The addition of D2D capability means that satellite connectivity can now reach not just fixed locations with dedicated terminals but any mobile device — extending reliable communications to the billions of people living, travelling, and working in areas beyond the reach of terrestrial cellular networks.
As Panos Panay, Amazon’s Senior Vice President of Devices & Services, put it: the goal is to extend coverage to “every corner of the planet.” Whether Amazon can execute on that ambition — overcoming its launch bottleneck, integrating Globalstar’s operations, and delivering competitive service quality — will determine whether the satellite internet market remains a one-horse race or becomes a genuinely competitive field.
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