Amazon confirmed it will acquire satellite operator Globalstar for USD 11.57 billion in a deal that will help the company build out its Amazon Leo satellite network. Amazon is offering Globalstar shareholders USD 90 per share.
The deal includes Globalstar satellites, radio frequency spectrum, and operational expertise, which will enable Amazon to add Direct-to-Device (D2D) services to future generations of its low Earth orbit satellite network.
The confirmation comes just two weeks after reports that Amazon was preparing a bid for Globalstar.
The deal also includes an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch, including Emergency SOS via satellite.
Apple notably holds a 20% equity stake in Globalstar, which it purchased in November 2024 in a deal valued at approximately USD 400 million and has agreed to provide Globalstar with USD 200 million in cash.
“There are billions of customers out there living, travelling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” said Panos Panay, senior vice president of devices & services, Amazon.
“By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places, keeping them connected to the people and things that matter most. We’re excited to support Apple users through the Leo D2D system, and look forward to working with mobile network partners to help extend coverage to every corner of the planet.”
Amazon is set to deploy its D2D satellite system starting in 2028, rivalling the likes of Elon Musk’s SpaceX.
In January, Amazon Leo requested an extension of 24 months for its satellite rollout because of launch shortages, after agreeing to deploy 1,600 satellites by July 2026, half of its 3,236 planned satellite constellation.
Globalstar was reportedly looking to sell the company late last year, with SpaceX rumoured to be a potential acquirer, but the companies neither confirmed nor denied the reports.
The company was founded in 1991 as a joint venture of Loral Corporation and Qualcomm. Its first-generation constellation of 48 low-Earth orbit (LEO) satellites, with four spares, launched in 1999. Its second-generation constellation has 24 spacecraft, and Globalstar is developing a third-generation fleet to serve Apple, with plans for an even larger constellation in the future.