By Amazon.com said on Tuesday it would acquire Globalstar in an $11.57 billion deal, strengthening its nascent satellite business as it seeks to compete with SpaceX’s Starlink.
Under the terms of the agreement, shareholders of Globalstar can choose to receive either $90 in cash or 0.3210 shares of Amazon common stock for each share they hold, the companies said.
Shares of Globalstar surged about 12% in premarket trading, while Amazon’s stock rose about 1%, reflecting investor optimism around the deal’s strategic potential.
The acquisition comes as Amazon accelerates the build-out of its satellite internet service, known as Leo, which has deployed more than 240 satellites since last April.
The acquisition of Globalstar is expected to accelerate Amazon’s entry into direct-to-device connectivity, a fast-growing segment of the satellite market.
It also positions the company to compete more aggressively in a sector dominated by SpaceX.
Deal to expand direct-to-device connectivity
In a joint statement, the companies said they had entered into a definitive merger agreement under which Amazon will acquire Globalstar.
The deal is expected to enable Amazon Leo to add direct-to-device services and extend cellular coverage beyond traditional network reach.
Amazon executive Panos Panay said the initiative targets underserved regions.
“There are billions of customers out there living, traveling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” he said.
Panay added that combining Globalstar’s expertise with Amazon’s capabilities would improve service reliability and reach.
Customers can expect “faster, more reliable service in more places,” he said, adding that the company is “excited to support Apple users through the Leo D2D system” and will work with telecom partners to extend coverage globally.
The companies also announced a collaboration with Apple, under which Amazon Leo will power satellite services for devices, including the iPhone and Apple Watch.
This includes features such as Emergency SOS via satellite, part of a broader push to integrate space-based connectivity into consumer devices.
Complex deal shaped by existing partnerships
The transaction follows earlier reports that Amazon had been in talks to acquire Globalstar, with negotiations complicated by Apple’s 20% stake in the satellite operator.
Apple had invested $1.5 billion in Globalstar in 2024 and secured access to 85% of its network capacity for satellite-based messaging services.
The arrangement required coordination between Amazon and Apple as part of the deal discussions.
Founded in 1991, Globalstar has seen its shares surge more than 270% over the past year, driven by takeover speculation and growing investor interest in satellite communications.
The company has also drawn attention from other suitors, as firms race to build constellations of low Earth orbit satellites.
Bloomberg previously reported that Globalstar had explored a potential sale and held early discussions with SpaceX.
Amazon ramps up satellite ambitions
Amazon’s Leo project is a key part of its long-term growth strategy, as the company looks to tap into demand for global connectivity.
Chief executive Andy Jassy has described the initiative as one of several “incremental opportunities” for the business.
Despite its progress, Amazon remains significantly behind SpaceX’s Starlink, which operates more than 10,000 active satellites.
Amazon currently has more than 180 satellites in orbit and aims to expand to about 700 by mid-year.
The company has faced challenges in scaling its network, including a shortage of launch capacity.
It was recently forced to seek a two-year extension from the Federal Communications Commission for a deadline to deploy 1,600 satellites.
Amazon has also secured commercial partnerships, signing deals with airlines such as JetBlue and Delta to provide in-flight internet services starting in 2027 and 2028.
Globalstar’s financial performance
Globalstar’s financial performance remains modest but stable.
The company reported full-year revenue of $273 million, up 9 per cent from 2024, and income from operations of $7.4 million in 2025 after a narrow loss the previous year.
While the deal strengthens Amazon’s technological capabilities, analysts note that execution will be critical as the company navigates regulatory hurdles, infrastructure constraints, and intensifying competition in the global satellite internet market.
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