Amazon.com announced on Tuesday it has agreed to acquire satellite communications company Globalstar in an $11.57 billion deal, significantly strengthening its satellite ambitions as it seeks to compete with Elon Musk’s dominant Starlink service. The acquisition will give Amazon immediate access to Globalstar’s network of approximately two dozen low-Earth orbit satellites, while also securing continued support for key Apple safety features that rely on Globalstar’s infrastructure. Under the terms of the deal, Globalstar shareholders will have the option to receive either $90 in cash or 0.3210 shares of Amazon common stock for each share they own. Covington, Louisiana-based Globalstar is best known for powering Apple’s Emergency SOS via satellite feature on iPhones and Apple Watches. The company provides voice, data, and asset-tracking services to enterprise, government, and consumer customers worldwide. Amazon has been aggressively building out its own Project Kuiper satellite broadband network. The company currently operates more than 200 satellites and plans to deploy around 3,200 satellites in low-Earth orbit by 2029, with roughly half required to be in place by a July 2026 regulatory deadline. Amazon intends to begin rolling out its satellite internet services later this year. In contrast, Starlink — the satellite internet unit of Musk’s SpaceX — already has about 10,000 satellites in orbit and serves more than nine million users globally, making it the clear market leader in the fast-growing satellite broadband sector. Apple owns approximately 20% of Globalstar Apple’s stake was acquired in November 2024 as part of a broader ~$1.5 billion commitment to support the expansion of Globalstar’s satellite network for iPhone and Apple Watch satellite features (such as Emergency SOS and messaging). Specifically, Apple paid about $400 million for a 20% equity stake (400,000 Class B shares), with the remaining ~$1.1 billion provided as cash commitments for new satellites, ground infrastructure, and related debt repayment. As part of the transaction, Amazon and Apple — which has invested approximately $1.5 billion in Globalstar — have signed a separate agreement to ensure the continued operation of satellite-based safety features, including Emergency SOS and Find My, for iPhone and Apple Watch users. Globalstar said late last year that a new Apple-backed network currently under development would expand its constellation to 54 satellites, including backups. Amazon’s move underscores the intensifying competition in the satellite internet space, where companies are racing to provide high-speed broadband connectivity to remote and underserved areas around the world. By acquiring Globalstar, Amazon gains established satellite assets and operational expertise as it works to close the gap with Starlink. MacDailyNews Note: The deal is expected to close in 2027, subject to regulatory approvals and Globalstar achieving certain satellite deployment milestones. Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Amazon to acquire Globalstar for $11.57 billion in attempt to challenge Starlink; Apple owns approximately 20% of Globalstar appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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