• Premium of 117% over pre-deal price gives Amazon immediate spectrum access.
  • Acquired constellation accelerates Amazon’s 2028 direct-to-device satellite launch target.

What happened

Amazon has agreed to acquire Globalstar in a transaction worth about $11.6 billion, paying $90 per share in cash or stock. The offer values the company at a 117% premium to its pre-announcement trading level. The deal is expected to complete in 2027, subject to regulatory approval.

The acquisition brings Globalstar’s satellite assets, spectrum rights and operational systems into Amazon’s expanding space communications strategy. These assets will be integrated into its “Leo” low-Earth orbit network, which aims to support both broadband and direct-to-device services.

Amazon is targeting a commercial launch of satellite-to-phone connectivity by 2028. The company currently operates roughly 200 satellites in orbit and plans to scale its constellation to more than 7,000 over time.

Globalstar currently powers Apple’s emergency messaging on iPhones and Apple Watches — a proven consumer use case Amazon could replicate at scale. The acquisition also brings enterprise aviation partnerships, including Delta’s in-flight connectivity programme.

Why it’s important

This acquisition signals a shift in Amazon’s satellite strategy from long-term organic build-out toward accelerated infrastructure consolidation. By absorbing Globalstar, Amazon gains immediate access to spectrum, operational satellites, and active service relationships that would otherwise take years to develop internally. This significantly shortens its path into the direct-to-device connectivity market, which is expected to become one of the fastest-growing segments in satellite communications.

The deal also reshapes competitive dynamics in low-Earth orbit networks. SpaceX’s Starlink maintains a dominant position through scale, vertical integration, and rapid deployment of thousands of satellites. Amazon remains behind in constellation size, but it is now building a hybrid model that combines its own infrastructure with acquired capabilities.

More broadly, the transaction reflects intensifying competition over global connectivity infrastructure, where satellite networks are increasingly linked with cloud platforms, device ecosystems, and enterprise services. The strategic focus is shifting from isolated broadband provision to integrated cloud-to-device connectivity stacks.

Market reactions underline this tension. Globalstar shares surged on acquisition news, while competitors such as AST SpaceMobile declined amid concerns over increased competition. Regulatory signals have been cautiously supportive, with U.S. Federal Communications Commission leadership suggesting the deal could expand competition in the emerging satellite communications sector.

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