Amazon has announced it will acquire Globalstar for $11.57bn in a move that will significantly expand its satellite business, according to the BBC, while the deal will allow Amazon to gain access to thousands of satellites through its Amazon Leo project, which has been in development for several years.

Amazon’s Vision for Space-Based Connectivity

Amazon said the acquisition of Globalstar aligns with its long-term vision for space-based connectivity; the company plans to deploy a next-generation satellite system by 2028, according to the BBC. This project is part of Amazon’s broader effort to offer internet and mobile phone services through low-earth orbit satellites.

Amazon’s move places it in direct competition with Starlink, a satellite-based internet and phone service launched by Elon Musk in 2019, as Starlink currently has over 10,000 active satellites in orbit, providing internet and mobile phone services to more than 10 million users, according to the BBC.

Starlink is a subsidiary of SpaceX and is likely a major source of revenue for the company, as it is estimated that Starlink could bring in between $500m and $1.2bn from individual user fees alone, according to the BBC.

Globalstar’s Role in the Acquisition

Globalstar, which Amazon is acquiring, currently has about 50 active satellites in low-earth orbit. However, Amazon’s Leo project aims to deploy thousands of satellites by 2028, which will require a significant increase in production and infrastructure, according to the BBC.

Amazon CEO Andy Jassy previously mentioned in an annual letter to shareholders that several companies, including Delta Airlines, JetBlue, AT&T, Vodafone, and NASA, have committed to using Amazon’s satellite services once more satellites are launched. These partnerships highlight the growing interest in space-based connectivity, according to the BBC.

As part of the acquisition, Amazon will take over Globalstar’s infrastructure, which includes operations in Louisiana, Georgia, Dublin, Ireland, Rio de Janeiro, Brazil, Toulouse, France, and two locations in California, according to the BBC.

Globalstar, which was founded in 1991 as a satellite communications company, has a notable customer in Apple — the company has been offering emergency SOS functionality on iPhones and Apple Watches since 2022. In 2024, Apple took a 20% stake in Globalstar, according to the BBC.

Amazon has also reached an agreement with Apple to continue offering the SOS functionality on Apple devices, ensuring that the service remains available to users even after the acquisition. This agreement reveals the strategic importance of Globalstar’s technology, according to the BBC.

Regulatory and Operational Milestones

Amazon’s acquisition of Globalstar includes a deal where shareholders can choose to receive either $90 in cash or 0.3210 shares of Amazon common stock for each share of Globalstar they own, according to the BBC.

Amazon has been working to deploy about 3,200 satellites in Earth’s low orbit by 2029, with roughly half required to be in place by a July 2026 regulatory deadline. The company currently operates a network of more than 200 satellites and is preparing to roll out its satellite internet services later this year, according to the BBC.

In contrast, Starlink already serves more than 9 million users globally, according to the BBC, as this highlights the challenge Amazon faces in catching up to its rival in the satellite internet market.

Globalstar, based in Louisiana, is popular for its role in powering Apple’s emergency SOS feature. The company had previously announced a new Apple-backed network under development that would expand its satellite constellation to 54 satellites, including a small number of backups, according to the BBC.

Globalstar offers voice. Data, and asset-tracking services to customers across the enterprise, government, and consumer markets. In a parallel move. Amazon and Apple, which has invested about $1.5bn in Globalstar, have signed an agreement to continue powering the satellite-based safety features, such as Emergency SOS and Find My, for iPhone and Apple Watch users, according to the BBC.

The acquisition is expected to close next year, subject to regulatory approvals and achievement of specific satellite deployment milestones by Globalstar, according to the BBC.