Amazon Globalstar deal

$10.8B Amazon Globalstar Deal Is A Race To Connect Phones Via Satellites

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Mirror Review

April 15, 2026

Amazon recently announced a definitive merger agreement to acquire Globalstar for approximately $10.8 billion. This allows Amazon to integrate Globalstar’s specialized spectrum and satellite infrastructure into its own low Earth orbit network.

By buying Globalstar, Amazon is positioning itself to compete directly with SpaceX’s Starlink in the growing satellite-to-cell phone market.

Let’s understand how this Amazon Globalstar deal will change how we use our mobile devices in remote areas.

Expanding The Amazon Leo Network

The Amazon Globalstar acquisition is aimed at boosting Amazon Leo, the company’s massive satellite broadband project.

By bringing Globalstar’s assets under its wing, Amazon gains access to essential radio frequency spectrum and operational expertise.

Key details of the expansion include:

  • Direct-to-Device (D2D): Amazon plans to launch its own D2D system starting in 2028.
  • Global Reach: The network aims to provide voice, text, and data services beyond the reach of traditional cell towers.
  • System Capacity: The complete network will eventually feature thousands of satellites to support hundreds of millions of users.

Panos Panay, Senior Vice President of Devices & Services at Amazon, noted that billions of people live or travel in places without network reach.

He stated, “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”.

Powering Future Apple Satellite Services

A major highlight of the Amazon Globalstar deal is a new partnership with Apple.

Amazon has agreed to power satellite services for supported iPhone and Apple Watch models.

Currently, Globalstar provides the link for Apple’s Emergency SOS and roadside assistance features.

Moving forward, Amazon Leo Globalstar assets will continue to support these vital safety tools while collaborating with Apple on future satellite innovations.

“This ensures our users will continue to have access to the vital satellite features they have come to rely on, including Emergency SOS, Messages, Find My, and Roadside Assistance via satellite,” said Greg Joswiak, Apple’s Senior Vice President of Worldwide Product Marketing.

Transaction Terms Of The Amazon Globalstar Deal

The deal is structured as a mix of cash and stock for Globalstar stockholders. Here are the primary financial terms:

CategoryDetail
Total ValueApproximately $10.8 Billion
Cash Option$90.00 per Globalstar share
Stock Option0.3210 Amazon shares per Globalstar share (capped at $90.00)
Approval58% of Globalstar voting power has already approved the deal
Expected Close2027, following regulatory approvals

The total price may see a downward adjustment of up to $110 million if Globalstar fails to meet specific operational milestones before the closing date.

Accelerating The Satellite Launch Race

To support its goals for Amazon Leo, the company is rapidly increasing its launch cadence. Amazon has already deployed over 200 satellites and operates the third-largest system currently in orbit.

To speed up deployment, Amazon has:

  1. Invested over $200 million in launch infrastructure at Cape Canaveral.
  2. Built a 100,000-square-foot processing facility in Florida, the largest of its kind.
  3. Secured a manifest of more than 100 missions using rockets from  Blue Origin, ULA, and SpaceX.
  4. Developed the capacity to build up to 30 satellites per week at its Washington facility.

End Note

The Amazon Globalstar deal represents a massive leap forward for space-based connectivity.

By combining Globalstar’s spectrum with the high-tech infrastructure of Amazon Leo, the company is ready to bridge the digital divide for millions of users.

As the project moves toward its 2028 rollout for direct-to-device services, it sets the stage for a world where being “off the grid” no longer means being out of touch

Maria Isabel Rodrigues

FAQs

  1. Why is Amazon buying Globalstar?

Amazon is buying Globalstar to expand its satellite network and enable direct-to-device (D2D) connectivity for smartphones. The deal gives Amazon access to Globalstar’s spectrum, satellites, and infrastructure to deliver voice, text, and data services from space.

  1. Who are the Amazon Globalstar Advisors?

Amazon and Globalstar have not officially disclosed their advisors for the deal. Typically, such transactions involve investment banks and legal firms to manage valuation, structuring, and regulatory approvals.

  1. Is Globalstar owned by Apple?

No, Globalstar is not owned by Apple but works as its satellite connectivity partner. Apple uses Globalstar’s network to power features like Emergency SOS on iPhones.

  1. Is Globalstar GEO or LEO?

Globalstar operates a Low Earth Orbit (LEO) satellite constellation. LEO satellites provide lower latency and better performance, making them ideal for real-time mobile connectivity.

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