Amazon has made a massive move in the “new space race” by announcing an agreement to acquire satellite operator Globalstar for approximately $11.6 billion. The deal not only bolsters Amazon’s “Amazon Leo” satellite network (formerly Project Kuiper) but also forms an unexpected alliance with Apple, inheriting the tech giant’s critical satellite roadmap.
Expanding the “Amazon Leo” Constellation By folding Globalstar’s fleet and infrastructure into its own, Amazon is significantly accelerating its timeline to compete with Elon Musk’s Starlink.
- Direct-to-Device (D2D): The acquisition gives Amazon access to Globalstar’s licensed mobile-satellite spectrum, a rare and highly regulated asset. This will allow Amazon to offer “direct-to-device” services—connecting standard smartphones directly to satellites—by 2028.
- Catching Up to Starlink: While Starlink currently dominates with nearly 10,000 satellites, this merger gives Amazon a functional, orbiting fleet and the necessary permits to scale its network to over 3,200 satellites by 2029.
The “iPhone Bonus”: A New Apple Partnership The most surprising element of the deal is Amazon’s new role as a vital service provider for Apple. Globalstar currently powers the “Emergency SOS” and satellite messaging features for the iPhone and Apple Watch.
- Inherited Roadmap: Amazon is essentially taking over Apple’s satellite services. Under a new long-term agreement, Amazon Leo will power future iPhone and Apple Watch features, including location sharing through “Find My” and roadside assistance.
- Continuity of Service: Amazon has committed to supporting all existing Apple devices that rely on Globalstar’s current network while collaborating with Apple on next-generation satellite capabilities.
A Three-Way Negotiation The deal was reportedly complex due to Apple’s existing 20% stake in a Globalstar subsidiary and its 2024 commitment of $1.5 billion to the company. After weeks of negotiations, Amazon, Apple, and Globalstar reached a resolution that allows Amazon to fully acquire the company while guaranteeing Apple the network capacity it needs for its devices.
Strategic Implications For Amazon, this acquisition is a “fast-forward” button for its space ambitions. It secures the company a flagship customer in Apple and provides the spectrum required to offer mobile data to remote areas. For Apple, the deal ensures that its safety features remain operational and have a clear path to higher speeds and better performance through Amazon’s more advanced Leo satellites.
The transaction, which offers Globalstar shareholders $90 per share in cash or Amazon stock, is expected to officially close in 2027 following regulatory approval.