Amazon acquires Globalstar for $11.6 billion to accelerate its Amazon Leo satellite network.

Amazon has agreed to acquire satellite communications company Globalstar for approximately $11.6 billion, marking its largest deal since the 2017 purchase of Whole Foods and a bold step to accelerate its Amazon Leo low Earth orbit satellite network. The move positions Amazon to challenge SpaceX's dominant Starlink service by gaining Globalstar's existing satellite fleet, infrastructure, and valuable spectrum licenses for direct-to-device connectivity.^[1][4][5]

The acquisition, formally announced after reports surfaced on April 1, allows Globalstar shareholders to choose between $90 in cash per share or 0.321 shares of Amazon stock, with cash payments capped at 40% of shares. Amazon's shares surged 5% on the news, adding $125 billion to its market cap in a single day, signaling investor confidence in the strategic fit despite the eye-popping multiple of about 40 times Globalstar's 2026 revenue.^[1][2] As reported by Bloomberg, the deal centers on Globalstar's spectrum assets, which Amazon sees as key to dominating the space-based internet market where Starlink currently leads.^[5]

A major aspect of the partnership involves Apple, which has long collaborated with Globalstar to power satellite features like Emergency SOS on iPhones and Apple Watches. Amazon has secured an agreement to extend this, planning to roll out voice, data, and full messaging services via Amazon Leo starting in 2028, reaching consumers in remote areas or beyond traditional cell coverage.^[1][2][4] Globalstar CEO Paul Jacobs emphasized that low Earth orbit constellations like this offer the best path to connect users anywhere.^[4]

This deal bolsters Amazon Leo, which has faced delays, by integrating Globalstar's 24 satellites, next-generation C-3 systems, and software-defined platforms for private wireless networks. It threatens the old telecom model reliant on ground towers from giants like Verizon and AT&T, shifting toward orbital infrastructure for global reach.^[2][4] However, the transaction awaits approval from the Federal Communications Commission, introducing some uncertainty.^[1]

For consumers, the implications are significant: iPhone and Apple Watch users could soon access seamless satellite services without specialized hardware, while enterprises and governments gain reliable connectivity in hard-to-reach spots. Amazon's CEO Andy Jassy highlighted rising investments in Leo during recent earnings, underscoring the program's scale-up.^[2]

The broader competition intensifies, with Amazon now better equipped to rival Starlink's head start through acquired assets rather than building from scratch. Analysts note the high price tag dilutes shareholders somewhat but view the spectrum and infrastructure as long-term wins immaterial to Amazon's $2.5 trillion valuation.^[1][5] As the deal progresses, it could redefine mobile connectivity, blending satellite tech with everyday devices.