Amazon agrees $11.6bn takeover of satellite group Globalstar
Deal will bolster tech group’s efforts to challenge Elon Musk’s Starlink with its own low Earth orbit satellite business
Amazon has agreed an $11.6bn deal to acquire satellite group Globalstar in a major takeover that will bolster its ambitions to challenge Elon Musk’s Starlink with its own rival low Earth orbit satellite business.
The deal, announced on Tuesday, is one of Amazon’s largest-ever acquisitions and will strengthen the Seattle-based group’s efforts to catch up with SpaceX’s lead in the field. The FT previously revealed that the two groups were in talks over a deal.
“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,” said Panos Panay, Amazon’s senior vice-president of devices and services.
Amazon said it would offer either $90 per Globalstar share or 0.32 shares of Amazon stock subject to various other conditions. The deal is expected to close next year.
By acquiring Globalstar, which was founded in 1991, Amazon will also secure immediate rights to radiowave spectrum, opening the door for it to provide direct-to-device (D2D) mobile communications in the future.
The service, which is already provided by Starlink, provides mobile connectivity to users who are outside terrestrial mobile networks.
Globalstar shares surged in recent months on the back of takeover speculation. Its stock was up more than 270 per cent in the past year, with its shares closing on Monday at $73 prior to Amazon’s announcement.
One complicating factor in talks was Apple’s 20 per cent stake in Globalstar. As part of the deal Amazon agreed for its Leo unit to support satellite service for Apple’s iPhone and Watch products including the emergency SOS service.
Amazon has more than 200 satellites in orbit but its deployment is dwarfed by the more than 10,000 active satellites operated by Starlink’s parent SpaceX. Amazon in February was forced to seek a two-year extension to a July deadline from the Federal Communications Commission for the launch of 1,600 satellites.
Amazon plans to have about 700 satellites in space by the middle of this year but has said that a shortage in launch capacity is hampering the build-out of its service, according to regulatory filings.
Amazon has signed deals with JetBlue and Delta Air Lines for internet services on flights commencing in 2027 and 2028 respectively.
Andy Jassy, Amazon’s chief executive, told investors in February that Leo was part of a suite of “incremental opportunities” that were being focused on by the $2.2tn ecommerce giant.
Globalstar reported full-year revenue of $273mn in its latest annual results, a 9 per cent increase from 2024. Income from operations was $7.4mn in 2025, an upswing after a narrow loss in the year prior.
The deal is one of Amazon’s largest-ever acquisitions, falling short of its $13.7bn takeover of the upmarket grocer Whole Foods in 2017 but larger than its $8.45bn takeover of film studio MGM agreed in 2021.