Amazon set to acquire satellite firm Globalstar to expand low-Earth orbit network

Amazon Inc on March 14 announced to acquire satellite communications company Globalstar in a deal valued at approximately $11.57 billion. The move will strengthen its low-Earth orbit (LEO) satellite ambitions under its Amazon Leo initiative. It will power satellite services for the iPhone and Apple Watch, including Emergency SOS via satellite.

The acquisition will give Amazon access to Globalstar’s satellite infrastructure, spectrum licenses, and mobile satellite services capabilities to move connectivity beyond traditional cellular networks. The company said the integration will allow Amazon Leo to deliver continuous voice, data, and messaging services to users in remote areas.

Panos Panay, Senior Vice President of Devices & Services at Amazon, said, “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—keeping them connected to the people and things that matter most.”

“We’re excited to support Apple users through the Leo D2D system, and look forward to working with mobile network partners to help extend coverage to every corner of the planet,” Panay added.

Amazon will also power Apple’s satellite features on its existing and future devices, like Emergency SOS, messaging, location sharing, and roadside assistance, which currently run on Globalstar’s satellites. 

Amazon plans to roll out a next-generation direct-to-device (D2D) satellite system starting in 2028, providing connectivity directly with satellites for voice, text, and data without relying on ground-based towers. This is expected to offer higher efficiency, faster speeds, and broader coverage compared to existing solutions.

Greg Joswiak, Senior Vice President of Worldwide Product Marketing at Apple, said, “Apple and Amazon have a long and proven track record of working together through Amazon’s core infrastructure services, and we look forward to building on that collaboration with Amazon Leo.” 

Under the merger, shareholders of Globalstar can choose to receive either $90 in cash or shares of Amazon stock per share, with the stock option capped at the same value. The Amazon blog post revealed that the cash payouts will be limited to 40% of total shares, with any excess automatically converted into stock. 

The overall deal value could be reduced by up to $110 million if Globalstar fails to meet certain operational milestones. The transaction has already been approved by shareholders holding about 58% of voting power and is expected to close in 2027, as per regulatory approvals and completion of satellite deployment targets.