Amazon has struck an $11.57 billion deal to buy Globalstar, a move that would give the technology group a sharper edge in satellite communications, deepen its rivalry with SpaceX’s Starlink and place it at the centre of the next phase of smartphone connectivity, including services tied to future iPhone and Apple Watch models. The proposed acquisition, announced on April 14, would fold Globalstar’s satellites, spectrum assets and operational capabilities into Amazon’s low-Earth-orbit network, now branded Amazon Leo.
The transaction matters beyond its size. Globalstar is not merely another satellite operator; it already underpins safety and messaging features used on Apple devices, including Emergency SOS via satellite. Amazon said it has also entered an agreement with Apple under which Amazon Leo will power satellite services for supported iPhone and Apple Watch models, keeping those services in place while broadening the technological and financial backing behind them. That gives Amazon an unusual foothold in a market where the contest is no longer only about broadband from space, but about direct links between satellites and handsets.
Under the agreed terms, Globalstar shareholders may choose either $90 in cash for each share they own or 0.3210 shares of Amazon common stock per Globalstar share. Reuters calculated the deal value at $11.57 billion, while the offer represents a premium of more than 31 per cent to Globalstar’s April 1 closing price, before reports of deal talks surfaced. The acquisition is expected to close in 2027, subject to regulatory approval and certain deployment milestones, with the U. S. Federal Communications Commission set to play a central role in reviewing it. FCC Chair Brendan Carr told CNBC the agency was “very open-minded” about the proposal.
For Amazon, the strategic appeal is plain. Globalstar’s system is built around reliable, lower-data direct-to-device connections, suited to emergency communications, messaging and coverage in areas where terrestrial mobile towers do not reach. Amazon said the purchase would allow Amazon Leo to add direct-to-device services to future generations of its network, with its own next-generation D2D system due to begin deployment in 2028. The company says that system is intended to support voice, data and messaging services for mobile phones and other cellular devices, extending the network’s reach from traditional broadband customers to ordinary handset users.
That ambition puts Amazon more squarely against Starlink, which remains the dominant force in commercial satellite connectivity. Reuters reported that Starlink has more than 10,000 satellites in orbit and serves more than 9 million users globally. Amazon, by contrast, has just over 200 satellites already launched for its broader network, and Reuters reported that the company had deployed 243 of the 3,236 satellites it pledged for its constellation. Analysts cited by Reuters said the Globalstar purchase improves Amazon’s direct-to-device spectrum position and could help it move faster in handset connectivity, but it does not solve the company’s biggest structural weakness: launch capacity.
That weakness may prove decisive. Reuters reported that shortages in rockets, manufacturing disruption and launch setbacks have slowed Amazon’s roll-out, forcing it at times to rely on SpaceX’s Falcon 9 rockets, an awkward dependence on the very rival it is trying to challenge. Earlier this year, Amazon sought a two-year extension from the FCC to meet a July deadline to deploy about 1,600 satellites, roughly half its planned constellation, and that request has not yet been ruled on. Blue Origin, founded by Jeff Bezos, is expected to become a bigger part of the answer over time, but its New Glenn rocket has not yet reached the launch cadence needed to support Amazon’s full satellite build-out.
Apple’s position adds another layer. Reuters reported that Apple invested about $1.5 billion in Globalstar in 2024 and secured a 20 per cent equity stake as part of that arrangement. That means Amazon is not entering this field from a standing start; it is buying into an ecosystem already connected to one of the world’s biggest consumer hardware franchises. For Apple, the deal could bring a deeper-pocketed satellite partner with broader infrastructure ambitions. For Amazon, it opens a path into premium consumer devices, emergency communications and mobile coverage services, all while creating optionality for enterprise and government users in remote locations.
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
