US Approves $11.5 Billion Amazon-Globalstar Merger

The US Federal Communications Commission (FCC) has cleared Amazon’s $11.5 billion acquisition of satellite service provider Globalstar. That has removed a key regulatory hurdle in the company’s push to expand its Leo business into direct-to-device (D2D) services.

Amazon is to acquire full control of Globalstar, its subsidiaries, satellite infrastructure, and mobile satellite spectrum. The FCC’s Space Bureau approved the purchase of around 25MHz of Globalstar’s mobile satellite spectrum by Amazon. It also cleared Amazon to access Globalstar’s C-3 system, a 48-satellite constellation intended to expand network capacity. Amazon must continue to comply with existing agreements between Globalstar and US defence and policing agencies.

The regulator explained that the transaction could improve coverage in underserved areas, strengthen emergency communications, and grow industrial and enterprise data services. “By approving this deal, the FCC has empowered Amazon Leo to deliver fast, next-generation satellite broadband services, increase competition and help communities stay connected”, FCC chair Brendan Carr said.

The FCC’s approval brings an anticipated close of the deal in 2027 a step closer and strengthens Amazon’s position in a market led by SpaceX’s Starlink, which operates more than 11,000 satellites. Amazon Leo aims to launch services by the end of the year, with its next-generation D2D system planned for 2028. It is seeking permission to launch up to 5,105 additional satellites for D2D services.