Anna Hartz
The race to control satellite networks is becoming one of the most important battles in global connectivity.
Big technology companies are now competing far beyond Earth. Amazon is the latest company to make a major move in this field, aiming to challenge Elon Musk’s Starlink system and expand its own presence in low Earth orbit.
Strengthens satellite ambitions
Amazon confirmed on Tuesday that it will acquire Globalstar in an $11.57 billion deal, according to El Economista. The acquisition strengthens Amazon’s satellite ambitions and gives its project, Amazon Leo, a stronger foundation. The company is still far behind SpaceX, which already operates around 10,000 satellites through Starlink. Amazon currently has only about 200 satellites in orbit, but it plans to expand to around 3,200 by 2029.
Globalstar’s existing infrastructure is seen as a key piece in helping Amazon reach that goal. After the announcement, Globalstar’s shares rose by about 9 percent.
Under the agreement, Globalstar shareholders can choose either $90 in cash or 0.3210 Amazon shares for each share they own. The deal includes limits that prevent more than 40 percent of payments being made in cash. Any excess is converted into stock instead.
The total value of the deal can also be reduced by up to $110 million if Globalstar does not meet certain performance targets. The transaction has already been approved by shareholders representing about 58 percent of voting power. It is expected to close in 2027, pending regulatory approval and technical milestones related to satellite replacement systems.
Direct connection to satellites
Amazon says the acquisition will help expand its satellite services. The company plans to use Globalstar’s spectrum, satellites and technical expertise to develop direct-to-device communication. This would allow phones and other devices to connect directly to satellites without relying on ground networks.
Globalstar’s CEO Paul Jacobs said low Earth orbit networks are the most effective way to connect users everywhere. He said the partnership with Amazon will accelerate innovation and improve global connectivity.
Amazon has also reached an agreement with Apple. The deal will improve satellite services for iPhone and Apple Watch users, including emergency SOS features. Apple already uses Globalstar for satellite connectivity on selected devices.
With Amazon’s expanded network, the company plans to continue supporting Apple devices and work on future satellite services together.
Amazon also says it wants to collaborate with mobile operators worldwide. The goal is to provide stable and fast connectivity anywhere on the planet through its growing satellite network.
