Amazon to buy Globalstar in deal worth about $11.6 billion
A United Launch Alliance Atlas V rocket is on the launch pad at the Cape Canaveral Space Force Station in Cape Canaveral, Florida, on April 9, 2025, carrying the Amazon Project Kuiper internet network satellites that are expected to eventually rival Elon Musk’s Starlink system.
Steve Nesius | Reuters
Amazon in question will buy on tuesday globalstar For $90 per share in a deal worth about $11.57 billion.
The deal will give Amazon’s nascent Leo satellite internet business a boost as it struggles to compete with Elon Musk’s SpaceX.
Globalstar’s shares rose more than 9% in premarket trading. Amazon’s shares rose about 1%.
Under the deal, Amazon said it will acquire Globalstar’s existing satellite operations, infrastructure and assets, including some spectrum licenses with global jurisdictions. Globalstar’s new satellites and existing fleet will work with Amazon’s network.
Amazon said the acquisition will allow it to build its own direct-to-device satellite system, which it expects to begin deploying in 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, so they can stay connected to the people and things that matter most,” Panos Panay, Amazon’s senior vice president of devices and services, said in a statement.
Globalstar shareholders will choose to receive $90 in cash or 0.3210 shares of Amazon common stock for each share of Globalstar stock they own, the companies said.
The transaction is expected to be completed in 2027.
Amazon said it agreed to a deal in addition to moving. Apple providing satellite connectivity for current and future iPhone and Apple Watch features.
Six years ago, Amazon announced plans to build a constellation of thousands of low-Earth satellites designed to provide consumers, businesses and governments with high-speed, low-latency internet and connections via square-shaped terminals.
Since last April, the company has launched more than 240 satellites through a series of rocket launches by partners such as United Launch Alliance and SpaceX. It recently rebranded the service from Project Kuiper to Leo.
Amazon is trying to catch up with SpaceX’s Starlink service, which currently dominates the space internet market. Starlink has more than 10,000 satellites in orbit and more than 9 million users. It recently received authorization from federal regulators to put 7,500 more satellites into orbit.
SpaceX also has a fledgling direct-to-device sales business called Starlink Mobile. The company has acquired multiple spectrum licenses. EchoStar It’s like building a network.
