Amazon acquires Globalstar for $11.57 billion to expand direct-to-device satellite services

Amazon has agreed to acquire satellite operator Globalstar for approximately $11.57 billion in cash, marking its largest deal since the 2017 purchase of Whole Foods and a bold expansion into direct-to-device satellite communications. The $90-per-share transaction, announced on April 14, 2026, gives Amazon full control of Globalstar's satellite fleet, ground infrastructure, and valuable mobile satellite services spectrum licenses, accelerating its Amazon Leo project amid delays in its own satellite deployments.

Globalstar, best known for powering Apple's Emergency SOS feature on iPhone 14 and later models as well as Apple Watch, provides critical services like emergency texting, roadside assistance requests, and location sharing in areas without cellular coverage. As part of the deal, Amazon and Apple have signed a separate agreement ensuring Amazon Leo will continue these satellite connectivity services for current and future Apple devices, a move that benefits the iPhone maker despite their rivalry in hardware. According to Bloomberg reports, this partnership positions Amazon to support Apple's satellite ambitions while integrating Globalstar's established operations.

The acquisition intensifies competition with Elon Musk's Starlink, which dominates the orbital mobile connectivity market projected to double to $200 billion in the coming years. Amazon Leo, formerly Project Kuiper, plans to launch over 3,200 satellites in low-Earth orbit but has faced setbacks, including only about 200 launches so far and a recent request to the Federal Communications Commission for an extension on deployment deadlines. By absorbing Globalstar's L- and S-band spectrum and infrastructure, Amazon bypasses years of regulatory hurdles and development, enabling direct-to-device services as early as later this year and a full network rollout from 2028 to serve hundreds of millions of endpoints worldwide.

Amazon CEO Andy Jassy recently highlighted Leo's early customers, including Delta Airlines, AT&T, Vodafone, Australia's National Broadband Network, and NASA, underscoring its potential beyond consumer devices. TechCrunch and other outlets note this as a strategic shortcut for Amazon to become a vertically integrated telecom powerhouse, combining launch contracts with Blue Origin and United Launch Alliance, AWS ground stations, and now Globalstar's assets. Globalstar shareholders can elect cash or a limited portion in Amazon stock, with cash capped at 40% of shares.

The deal, described by industry observers as the most significant satellite sector consolidation this decade, still requires FCC approval and could face scrutiny over spectrum management and competition. For consumers in remote areas, it promises enhanced global satellite phone and data services, while investors eye Amazon's high multiple—about 40 times Globalstar's projected 2026 revenue—as a bet on explosive growth in non-terrestrial networks. As reported by SatNews, Amazon's use of dynamic spectrum management and beam steering will help integrate these systems without disrupting safety services.