Amazon is making a decisive move to challenge Elon Musk’s Starlink in the rapidly growing orbital connectivity market. The tech giant announced on Tuesday that it has reached an agreement to acquire satellite provider Globalstar in an all-cash deal valued at $11.57 billion.
The acquisition, priced at $90 per share, grants Amazon full control over Globalstar’s satellite operations, infrastructure, and critical mobile satellite service spectrum licenses. This strategic move is designed to accelerate the development of Amazon Leo, the company’s burgeoning satellite venture.
Strengthening the “Amazon Leo” Infrastructure
The acquisition comes at a pivotal moment for Amazon’s space ambitions. While Amazon Leo aims to deploy a massive constellation of over 3,200 satellites in low-Earth orbit (LEO), the project has faced significant hurdles. To date, only about 200 satellites have been launched, leading the company to request a deadline extension from the Federal Communications Commission (FCC) regarding its orbital requirements.
By absorbing Globalstar, Amazon gains immediate access to established satellite technology and spectrum, which will help bridge the gap between its current capabilities and its long-term goals.
Key components of the deal include:
– Direct-to-Device Services: A core pillar of the Amazon Leo roadmap, intended to launch later this year.
– Broad Client Base: Amazon CEO Andy Jassy recently highlighted a prestigious roster of partners, including NASA, AT&T, Vodafone, Delta Airlines, and Australia’s National Broadband Network.
– Aviation Connectivity: Amazon recently unveiled a specialized satellite internet antenna designed to provide high-speed connectivity for commercial aircraft.
Maintaining the Apple Connection
One of the most significant aspects of this transition is the continuity of services for Apple users. Globalstar is currently the backbone of the “Emergency SOS” feature found on iPhone 14 and newer models, enabling emergency texting, location sharing, and roadside assistance in remote areas.
Amazon has confirmed it has reached an agreement with Apple to ensure that these satellite connectivity services for the iPhone and Apple Watch remain uninterrupted following the acquisition.
The Competitive Landscape: Amazon vs. Starlink
This acquisition highlights the intensifying “space race” for global internet dominance. Amazon is positioning itself to compete directly with SpaceX’s Starlink, which currently holds a massive lead in the sector:
| Feature | Starlink (SpaceX) | Amazon Leo (Projected) |
|---|---|---|
| Satellites in Orbit | 10,000+ | ~200 (Targeting 3,200+) |
| Global Reach | ~150 countries | Aiming for hundreds of millions of users |
| Primary Focus | Retail, Maritime, Aviation | Broadband, Direct-to-device (by 2028) |
While Globalstar currently operates just over 24 satellites, its agreement to acquire 50 new satellites and its existing launch partnership with SpaceX will provide Amazon with the necessary momentum to scale its constellation.
Looking Ahead
Amazon’s ultimate vision is to create a seamless global network. By 2028, the company plans to deploy a direct-to-device satellite system that integrates with its existing broadband and satellite infrastructure. The goal is to support “hundreds of millions of customer endpoints” worldwide, effectively turning the sky into a global connectivity hub.
This acquisition transforms Amazon from a late entrant into a serious contender in the satellite industry, providing the essential infrastructure needed to compete with established players like SpaceX.
