Amazon to Acquire Globalstar to Compete with SpaceX - Techstrong IT

Amazon has agreed to acquire Globalstar in a transaction valued at roughly $11.6 billion, a purchase that supports the company's effort to build a competitor to SpaceX's Starlink network. The deal gives Amazon control of Globalstar's satellite fleet, spectrum licenses, and ground infrastructure, assets that are expected to accelerate deployment of its low Earth orbit system, known as Leo.

Demand is growing for satellite-based connectivity, particularly in regions underserved by traditional cell networks. Amazon said the acquisition will allow it to expand beyond broadband into direct-to-device services, enabling smartphones and other devices to connect directly to satellites.

"There are billions of customers out there living, traveling, and operating in places beyond the reach of existing networks," said Panos Panay, Amazon's senior VP of devices and services. "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."

Globalstar brings an established satellite operation to Amazon's effort. The company operates a network focused on mobile satellite services, including connectivity for remote communications and emergency use cases. Globalstar has also played a central role in enabling Apple's satellite features on iPhones, including emergency messaging.

As part of the announcement, Amazon and Apple confirmed a new agreement that will use the Leo network to further support satellite features on iPhone and Apple Watch models. These services include emergency messaging, location sharing, and roadside assistance, capabilities designed for use beyond the reach of land-based networks.

Apple executive Greg Joswiak said the company's satellite features have already proven critical in real-world scenarios. "Our groundbreaking safety service Emergency SOS via satellite has helped save many lives around the world," he said, adding that the expanded partnership will ensure continued access to these services.

Competition in the satellite sector is clearly growing more intense. SpaceX's Starlink remains the dominant player, with thousands of satellites in orbit and millions of users worldwide. Amazon, by contrast, has launched only a fraction of its planned constellation and has faced delays in meeting regulatory milestones.

Acquiring Globalstar provides a shortcut to scale. Its existing infrastructure and spectrum could allow Amazon to accelerate deployment timelines and expand into direct-to-device services more quickly than building from scratch.

Amazon plans to begin deploying its own direct-to-device satellite system in 2028. The company claims the new system will offer higher efficiency than earlier approaches, supporting voice, data, and messaging services directly on consumer devices.

The overall strategy is to integrate these features into a unified network that supports both fixed broadband and mobile connectivity. Amazon is building a system capable of serving consumers and enterprise users across a wide range of scenarios, from rural broadband to emergency response.

The transaction is expected to close in 2027, pending regulatory approval and operational milestones. Globalstar shareholders will receive either cash or Amazon stock under a structured compensation plan.