Amazon to Acquire Globalstar for $11.6 Billion

Amazon to Acquire Globalstar for $11.6 Billion

Amazon signed a deal to acquire satellite operator Globalstar for $11.6 billion. It has also reached an agreement with Apple to power satellite connectivity on iPhones and other devices.

It will take control of Globalstar’s existing satellite operations, infrastructure, and assets, including MSS spectrum licences and global authorisations. Amazon pointed to numerous benefits of the tie-up, including Amazon Leo being able to beef up its connectivity offering for consumer, enterprise, and government customers, utilizing Globalstar’s existing fleet and its new satellites to operate alongside its broadband system.

Beginning in 2028, Amazon Leo said it will deploy its own next-generation D2D satellite system, offering substantially higher spectrum use and efficiency than legacy D2D systems, claiming this will translate into faster speeds and performance for customers. Amazon added that it will integrate first and second-generation Leo systems, forming a powerful, unified network combining fixed and mobile satellite services. Amazon currently has 200 satellites in orbit, intending to operate 3,200 by 2029. As per Federal Communications Commission (FCC) requirements, it is required to have roughly half in place by July 2026.

In a parallel agreement, Amazon struck a deal with Apple to provide satellite connectivity for current and future iPhone and Apple Watch devices. Apple has been a long-term partner of Globalstar and invested more than $1 billion in the satellite company. The pair’s existing partnership sees Globalstar power satellite services, allowing users to text emergency services, send messages, request roadside assistance, and share locations. Amazon said it will continue to provide these services and collaborate on future satellite use cases.