Amazon.com announced on Tuesday it will acquire Globalstar in an $11.57 billion deal, bolstering its fledgling satellite business as it seeks to challenge Elon Musk's Starlink. The acquisition gives Amazon access to Globalstar's network of 24 satellites, infrastructure, and spectrum licenses, which will operate alongside Amazon's own Leo satellite internet business.
Core Facts & Immediate Action
Amazon's acquisition of Globalstar, valued at $11.57 billion, includes the satellite operator's existing network, infrastructure, and spectrum licenses. The deal aims to accelerate Amazon's satellite internet ambitions, particularly its direct-to-device (D2D) technology, which is set to deploy in 2028. Globalstar's satellites will complement Amazon's planned constellation of 3,200 satellites by 2029, with half required to be in place by a July 2026 regulatory deadline.
Deeper Dive & Context
Competitive Landscape
Amazon's move comes as it lags behind SpaceX's Starlink, which already has 10,000 satellites in orbit and serves over 9 million users globally. Amazon has deployed only 243 of its planned 3,236 satellites due to rocket launch shortages and manufacturing disruptions, forcing it to rely on SpaceX's Falcon 9 rockets for launches. The company recently requested a two-year extension from the U.S. Federal Communications Commission (FCC) to meet its satellite deployment deadline, which is still pending.
Strategic Benefits
Globalstar's network is designed for direct connections to mobile devices, a capability Amazon plans to leverage for its D2D system. The acquisition also includes Globalstar's partnerships, such as its collaboration with Apple for the Emergency SOS feature. Amazon aims to integrate Globalstar's expertise and infrastructure to enhance its satellite internet services, which are expected to launch later this year.
Market Implications
The satellite internet market is lucrative, with potential customers ranging from airlines and cruise ships to remote businesses and underserved regions. Analysts note that while the acquisition strengthens Amazon's position, it still faces challenges in deployment speed and launch access. SpaceX's Starlink maintains a significant lead in scale and coverage, with plans to expand its D2D capabilities through telecom partnerships.
Regulatory and Financial Impact
The deal has drawn scrutiny from regulators, including FCC Chair Brendan Carr, who criticized Amazon's slow deployment pace. Globalstar's shares surged over 10% in premarket trading, while Amazon's stock rose about 1%. The acquisition is expected to close in 2025, subject to regulatory approvals.