Amazon has agreed to acquire satellite communications firm Globalstar in a deal valued at $11.57 billion, marking a significant escalation in its efforts to compete with SpaceX’s Starlink network and expand its presence in the rapidly growing satellite connectivity market.

The agreement will see Amazon take control of Globalstar’s existing constellation of roughly two dozen satellites, integrating them into its broader low Earth orbit (LEO) ambitions.

The company is already working towards deploying around 3,200 satellites by 2029, with approximately half required to be operational by a July regulatory deadline, and is preparing to roll out its own satellite internet services later this year.

Tech companies have been investing heavily in satellite-based connectivity, seeking to capture a market that promises global coverage beyond traditional terrestrial infrastructure.

However, Amazon faces a substantial challenge in catching up with Starlink, which has built a network of around 10,000 satellites and already serves more than nine million users worldwide. The SpaceX unit is also developing its own direct-to-device (D2D) capabilities through partnerships with telecom operators, including T-Mobile.

Apple partnership and regulatory outlook

Globalstar’s technology is designed to provide low-data, reliable connections directly to mobile devices, removing the need for ground-based cellular towers. This capability has become increasingly important for emergency services and connectivity in remote or underserved regions. Amazon said the acquisition would support the deployment of its own D2D services from 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, Senior Vice President of Devices & Services at Amazon.

The deal also reinforces Globalstar’s existing relationship with Apple. The satellite operator currently underpins features such as Emergency SOS and Find My for iPhone and Apple Watch users. Amazon confirmed it has signed an agreement with Apple to continue providing those services, ensuring continuity for existing customers.

“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,” said Greg Joswiak, Apple’s Senior Vice President of Worldwide Product Marketing, in a press release.

Apple had previously invested around $1.5 billion in Globalstar in 2024 to support the expansion of its satellite-based communications services, securing a 20% equity stake in the company. Globalstar has also been working on a next-generation network that would expand its constellation to 54 satellites, including backup units.

Under the terms of the acquisition, Globalstar shareholders will be able to choose between receiving $90 in cash or 0.3210 shares of Amazon common stock for each share they own, with the offer representing a premium of more than 31% to Globalstar’s closing price on 1 April, prior to reports of deal discussions.

Amazon noted that the total consideration will fluctuate in line with its share price until completion, adding that Globalstar’s equity was valued at approximately $10.8 billion as of 9 April.

The transaction is expected to close next year, subject to regulatory approvals and the achievement of specific deployment milestones. Approval from the US Federal Communications Commission will be required, with its chair Brendan Carr indicating a broadly positive stance on the proposal.

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“We’re very open minded” about the deal, Carr said during an appearance on CNBC. “Ultimately, we’ll have to take a look at the paperwork and see, but it’s consistent with the long-term vision that we have to make sure the U.S. leads in this next-gen era of direct-to-cell technologies,” he added.

Markets reacted positively to the announcement. Shares in Globalstar rose by more than 10%, building on gains made in the previous two weeks amid speculation over the deal. Amazon’s stock also climbed by around 3%, while MDA Space, the primary contractor for Globalstar’s next-generation constellation, saw its shares jump by 9%.

The acquisition comes at a time when competition in satellite connectivity is intensifying, with companies seeking to integrate broadband and mobile capabilities in orbit in much the same way as terrestrial providers bundle fixed and mobile services – Starlink has a fair start in the race and will be hard to catch.