Source Credit : Portfolio Prints
Amazon said Tuesday it would acquire Globalstar for $90 per share in a deal valued at $11.5 billion, marking a major escalation in the race to dominate low Earth orbit (LEO) connectivity.
The acquisition significantly strengthens Amazon’s emerging satellite internet ambitions, positioning it more directly against Elon Musk’s SpaceX and its market-leading Starlink network.
Investor response was swift: Globalstar shares jumped more than 9% in premarket trading, while Amazon stock edged up roughly 1%, reflecting cautious optimism about the strategic expansion.
Under the terms of the agreement, Amazon will take control of Globalstar’s satellite operations, infrastructure, and key spectrum licenses with global reach. The integration will allow Globalstar’s current and next-generation satellites to operate alongside Amazon’s growing LEO constellation, creating a more robust and scalable network.
Crucially, the deal accelerates Amazon’s push into direct-to-device satellite connectivity—a rapidly emerging segment that enables smartphones and other consumer devices to connect directly to satellites without specialized hardware. The company expects initial deployment of this capability by 2028.
“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—keeping them connected to the people and things that matter most,” said Panos Panay, Amazon’s senior vice president of devices and services.
Globalstar shareholders will have the option to receive either $90 in cash or 0.3210 shares of Amazon common stock for each share held, offering flexibility between immediate liquidity and long-term equity participation in Amazon’s satellite strategy.
The transaction is expected to close in 2027, subject to regulatory approvals and customary closing conditions.
Amazon’s ambitions in space-based internet date back six years, when it unveiled plans for a vast constellation of LEO satellites aimed at delivering high-speed, low-latency connectivity to consumers, enterprises, and governments. Since April of last year, the company has launched more than 240 satellites through partnerships with providers such as United Launch Alliance and SpaceX. The service, formerly known as Project Kuiper, was recently rebranded as “Leo.”
Despite this progress, Amazon still trails SpaceX’s Starlink, which dominates the space-based internet market with over 10,000 satellites in orbit and more than 9 million users worldwide. Starlink has also secured regulatory approval to deploy an additional 7,500 satellites, further extending its lead.
With the Globalstar acquisition, Amazon is not just expanding capacity—it is making a calculated bet on vertical integration and spectrum control as key levers in the next phase of the global connectivity race.
