Amazon to buy satellite firm Globalstar in $11.5b deal

Amazon agreed to buy mobile satellite operator Globalstar in an $11.57 billion deal, boosting its early-stage satellite business as it seeks to catch up with Elon Musk’s Starlink.

The company also signed a separate deal with Apple to support satellite features on iPhone and Apple Watch, including Emergency SOS.

Amazon’s Leo network will power future services, while it continues supporting existing Globalstar constellations.

Globalstar shareholders can choose US$90 a share in cash or 0.3210 shares of Amazon, capped at US$90.

Cash elections are limited to 40% of shares, and total consideration could be reduced by up to US$110 million if operational milestones are missed.

Amazon said Leo will start deploying its own direct-to-device system in 2028.

The Globalstar deal is expected to close in 2027 after regulatory approvals and satellite milestones. Holders of about 58% of Globalstar voting power have approved it.

🔗 Source: Amazon

🧠 Food for thought

Implications, context, and why it matters.

The real prize for Amazon is Globalstar’s rare spectrum

Amazon is buying more than satellites. It gains globally harmonized spectrum assets, meaning wireless radio frequencies licensed across many countries, which could take decades to gather one market at a time 1.
The spectrum stands out because Globalstar is the only U.S. Mobile-Satellite Service (MSS) licensee in the 2483.5–2495 MHz band. The Federal Communications Commission, the main U.S. telecom regulator, has set rules that let MSS licensees request approval for a terrestrial low-power system, meaning a ground-based wireless network, using that same MSS spectrum 2.
Globalstar has landed MSS and terrestrial approvals in several African countries, including South Africa and Mozambique. Those licenses cover a population of more than 100 million people 3.

A new tech alliance challenges Starlink and reshapes global telecoms

The acquisition sets up a new rival to Starlink, SpaceX’s satellite internet business. Starlink already runs a direct-to-device service through its partnership with T-Mobile in the United States 1.
The deal also tightens Amazon’s ties to Apple, which relies on Globalstar for satellite features on iPhone and Apple Watch models. Under an updated service agreement, Globalstar assigns 85% of its network capacity to Apple, which prepays for services 4.
Amazon plans to build a layered offering that blends broadband satellite, direct-to-device service, and deeper device integration through its partnership with Apple 1.
The plan centers on working with telecom operators to extend coverage where traditional cell towers do not pay off 1.