Amazon has taken a significant strategic step by agreeing to acquire satellite operator Globalstar for $11.57 billion. This deal pushes the company deeper into the satellite connectivity segment, where Starlink already dominates, and also shows that the largest tech companies want to control not only the cloud and artificial intelligence but also the infrastructure through which these services will operate on a global scale. [1]
A Deal That Changes Amazon’s Ambitions
The $11.57 billion deal is one of Amazon’s biggest moves beyond its traditional pillars of e-commerce and cloud services. Entering the satellite segment on this scale suggests that the company no longer views connectivity as a side project, but as another strategic layer of its future growth.
The acquisition includes not only the satellites themselves, but also operational assets, infrastructure, and licenses for MSS spectrum with global permits. Control over spectrum and regulatory rights is particularly valuable in the satellite business, as it determines where and how an operator can actually provide its services.
What Amazon is actually acquiring
Globalstar is not an unknown or purely speculative company, but an established provider of mobile satellite services with real technology and operations. The company is regarded as a major MSS operator and a pioneer in the field of NGSO satellites and direct-to-device (D2D) technology, i.e., the direct connection of a satellite to a mobile device.
D2D is one of the most important components of the entire transaction, as it extends the use of satellite networks to everyday consumer electronics. This means that satellite communication need not be limited to remote regions, ships, or aircraft, but can gradually expand to mobile services for the broader market.
Direct Pressure on Starlink
With this deal, Amazon is entering a segment where a strong leader already holds a significant lead. Starlink has launched more than 8,000 satellites, of which approximately 7,000 are active, and its services are available in more than 125 countries, demonstrating just how much ground Amazon still has to make up.
However, Amazon isn’t planning a small supplementary project, but its own large network with global ambitions. The Amazon Leo constellation is set to consist of more than 3,000 satellites in low Earth orbit and, starting in 2028, is expected to deliver its own D2D system with capacity for hundreds of millions of devices worldwide. [2]
Apple, Mobile Phones, and a New Business Arena
The significance of this acquisition is further amplified by the agreement with Apple, which brings Amazon closer to the mass consumer market. Amazon Leo is set to provide satellite services for supported iPhone and Apple Watch models, including emergency messaging, communication with family, roadside assistance, and other features, thereby transforming the infrastructure project into a consumer technology platform as well.
For investors, it is significant that with this move, Amazon is expanding its future reach beyond e-commerce and AWS into telecommunications, mobile coverage, and connectivity for both businesses and the public sector. The transaction is expected to close in 2027 following the receipt of regulatory approvals, and shareholders holding approximately 58% of the voting rights in Globalstar have already approved the deal, which mitigates some of the execution risk.
[1], [2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Actual results may differ materially from those expressed or implied in any forward-looking statements.
Sources:
https://www.aboutamazon.com/news/company-news/amazon-globalstar-apple
https://www.wired.com/story/why-amazon-is-buying-globalstar-and-what-it-means-for-your-iphone/
https://www.cnbc.com/2026/04/14/amazon-globalstar-satellite-leo-internet.html
