A United Launch Alliance Atlas V rocket rests on a launch pad carrying Amazon’s Project Kuiper Internet Network satellite, which is expected to eventually rival Elon Musk’s Starlink system, at Cape Canaveral Space Force Station in Cape Canaveral, Florida, April 9, 2025.
Steve Nessius | Reuters
Amazon announced the acquisition on Tuesday. global star At $90 per share, the deal is worth approximately $11.57 billion.
The deal will give momentum to Amazon’s nascent Leo satellite internet business, which competes with Elon Musk’s SpaceX.
Globalstar’s stock price rose more than 9%. Amazon’s stock price rose more than 2%.
Under the agreement, Amazon announced it will acquire Globalstar’s existing satellite operations, infrastructure, and assets, including certain globally licensed spectrum licenses. Globalstar’s new satellites and existing satellite constellation will operate in parallel with Amazon’s network.
Amazon said the acquisition will enable it to build its own direct-to-device communications satellite system, which it plans to begin deploying in 2028.
“By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer focus and innovation, customers can now expect faster, more reliable service in more places, allowing them to stay connected to the people and things that matter most,” Panos Panay, Amazon’s senior vice president of devices and services, said in a statement.
Globalstar shareholders will receive either $90 in cash or 0.3210 shares of Amazon common stock for each Globalstar share they own, the companies said.
The transaction is expected to close in 2027.
In addition to this move, Amazon apple Provides satellite connectivity for current and future iPhone and Apple Watch features.
Apple acquired a 20% stake in Globalstar in 2024 as part of a $1.5 billion investment to strengthen the company’s satellite fleet and ground infrastructure. Globalstar, which operates about 24 satellites, is enhancing Apple’s Emergency SOS feature, which allows its devices to send texts even in isolated areas.
Six years ago, Amazon announced plans to build a constellation of thousands of low-Earth satellites designed to provide high-speed, low-latency internet to consumers, businesses and governments, offering connectivity through square terminals.
Since last April, the company has launched more than 240 satellites through a series of rocket launches with partners including United Launch Alliance and SpaceX. We recently rebranded the service from Project Kuiper to Leo.
Amazon faces delays in satellite deployment milestones. The company asked the Federal Communications Commission in January for more time to meet a deadline to launch about 1,600 satellites by July 2026.
Amazon is trying to catch up with SpaceX’s Starlink service, which currently dominates the market for internet from space. Starlink has more than 10,000 satellites in orbit and more than 9 million users. It recently received permission from the FCC to put 7,500 more satellites into orbit.
SpaceX also has a fledgling Direct-to-Device business called Starlink Mobile. The company holds multiple frequency licenses from: echo star Because we’re trying to build that network.
