Amazon Acquires Globalstar for $11.6 Billion to Take on Starlink in Satellite Internet

Amazon is acquiring Globalstar, the satellite communications operator, for approximately $11.57 billion — or $90 per share in cash or stock. The deal is expected to close in 2027, pending regulatory approval. The acquisition gives Amazon a low Earth orbit satellite constellation of its own, positioning it as a direct competitor to Elon Musk's Starlink in the satellite internet market.

Why Globalstar and Why Now

Globalstar operates a LEO constellation that currently provides satellite messaging and emergency SOS services. Its existing customer relationship with Apple — the iPhone's Emergency SOS via Satellite feature runs on Globalstar's network — makes the asset strategically valuable beyond its current capabilities.

Amazon's Project Kuiper, its homegrown satellite internet initiative, has been years in development but is still far behind Starlink in deployment. Acquiring Globalstar's existing infrastructure, spectrum licenses, and operational expertise accelerates the timeline materially. Spectrum licenses in particular are hard to obtain and long to acquire organically — Globalstar's holdings represent years of regulatory work that Amazon is buying outright.

The Apple Connection

Amazon's Panos Panay confirmed that Apple will continue using Amazon Leo — the post-acquisition brand — for iPhone and Apple Watch satellite services. This means Apple's existing infrastructure partnership shifts from Globalstar to Amazon, which is notable given Amazon and Apple's complicated competitive relationship across media, smart home, and cloud.

For Apple, the transition is straightforward: the satellite infrastructure behind Emergency SOS gets acquired by a larger, better-capitalized operator. For Amazon, inheriting an Apple partnership is a significant endorsement of the technology and a revenue floor for the combined entity.

Starlink in the Crosshairs

Starlink has approximately 7,000 satellites in orbit and is the dominant satellite internet provider globally. Amazon's Kuiper has launched its first commercial satellites but is years behind. The Globalstar acquisition does not close that gap overnight — Globalstar's constellation is smaller and designed for different use cases — but it gives Amazon a platform, licensed spectrum, and operational infrastructure to accelerate from.

The Bottom Line

At $11.57 billion, Amazon is paying a significant premium for Globalstar's spectrum and strategic positioning rather than its current revenue. The deal is a declaration that Amazon intends to be a major player in satellite connectivity — not just a cloud provider that hosts other people's satellite data. For Starlink, it means the world's largest cloud company is now building toward direct competition in its core market.