Amazon buys Globalstar to catapult into direct-to-device race
TAMPA, Fla. - Amazon announced plans April 14 to buy satellite operator Globalstar in a deal valued at around $11 billion, marking its entry into the emerging market for providing connectivity directly to mobile phones and other cellular devices.
The deal would preserve Globalstar's role supporting Apple's SOS and other basic space-based messaging services on newer iPhone and Apple Watch models, alongside plans to deploy a more advanced direct-to-device (D2D) network in 2028 as part of Amazon's delayed low Earth orbit (LEO) broadband constellation.
Amazon also said it would support Globalstar's next-generation constellation plans, including an Apple-backed replenishment of its L-band network and a D2D expansion involving more than 50 satellites being built by MDA.
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An Amazon spokesperson told SpaceNews that deploying a next-generation D2D system of its own "won't impact our timeline or plans for our core Leo broadband service, which remains on track to roll out later this year" amid plans to accelerate launches with larger, more capable rockets.
Greg Joswiak, Apple's senior vice president of worldwide product marketing, said in a statement: "Apple and Amazon have a long and proven track record of working together through Amazon's core infrastructure services, and we look forward to building on that collaboration with Amazon Leo.
"This ensures our users will continue to have access to the vital satellite features they have come to rely on, including Emergency SOS, Messages, Find My, and Roadside Assistance via satellite, so they can stay safe and connected while off the grid."
Amazon said its own D2D system would expand beyond Apple's existing emergency messaging services to support voice and data, although it did not detail expected performance or how those capabilities would compare with rivals.
Another blockbuster space acquisition
Globalstar shareholders are being offered $90 in cash per share or 0.321 shares of Amazon stock, with the stock consideration capped at $90. The equity was valued at about $10.8 billion when the exchange ratio was set April 9, according to an Amazon spokesperson, compared with higher estimates of about $11.6 billion based on the deal's $90-per-share cap. The consideration is also subject to proration limits and potential adjustments tied to operational milestones.
Amazon said it expects to close the acquisition in 2027, pending regulatory approvals and conditions that include progress on Globalstar's HIBLEO-4 replacement satellites.
The companies said shareholders representing about 58% of Globalstar's voting power have already approved the transaction.
"The deal is complete from the Globalstar perspective, but we'll be working cooperatively with various regulators across numerous jurisdictions, and also seeking telecommunications license change of control approvals in the U.S. and other countries worldwide, to close the transaction," the Amazon spokesperson said.
The acquisition would give Amazon control of Globalstar's satellite operations, infrastructure and globally licensed mobile satellite services (MSS) spectrum, amid SpaceX's multibillion-dollar push for frequencies that would expand D2D capabilities alongside its Starlink LEO broadband network.
Starlink provides high-speed internet to millions of users globally after amassing more than 10,000 satellites in LEO since deployments began ramping up in 2019, making it by far the world's largest constellation.
The company began offering D2D services in 2024 after launching upgraded satellites with larger antennas designed to connect directly with unmodified smartphones, initially via cellular spectrum partnerships with mobile operators such as T-Mobile in the United States.
Only 241 of a proposed 3,232 first-generation Amazon Leo satellites have been launched since deployments got underway last year.
Amazon Leo aims to provide initial broadband services slated for mid-summer.
However, half the constellation - 1,616 satellites - must be in orbit by July to meet a milestone in its Federal Communications Commission license.
Amazon asked the FCC in January for a two-year extension or waiver of the deadline, pointing to delays with key launch vehicles in a massive mission manifest that includes Arianespace's Ariane 6, Blue Origin's New Glenn and ULA's Vulcan Centaur.
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