Amazon has announced that it will acquire Globalstar in an $11.57 billion deal, which is a major push into satellite-based internet services as it looks to compete directly with Elon Musk’s Starlink. The acquisition strengthens Amazon’s low Earth orbit ambitions under its Amazon Leo programme and gives it a faster route into space-based connectivity. Globalstar is already known for powering Apple’s emergency satellite features on iPhones and Apple Watches. The deal also ensures continuity for Apple users, as a new agreement keeps satellite support active for safety features. The move comes at a time when SpaceX’s Starlink continues to dominate the market with a large satellite fleet and millions of users across the world, setting a high benchmark for new entrants like Amazon.
Amazon’s satellite push to take on Starlink
Amazon has been steadily building its satellite internet system as part of a long-term plan to offer connectivity beyond traditional mobile networks. Under its Amazon Leo initiative, the company has already placed more than 200 satellites in orbit and plans to expand this network to around 3,200 satellites by 2029. A regulatory requirement also pushes the company to deploy a significant portion of its constellation by July 2026, adding pressure to its rollout schedule.
With the Globalstar acquisition, Amazon gains access to an existing network of around two dozen low Earth orbit satellites. This gives the company an immediate boost in its direct-to-device plans, where smartphones and other devices can connect directly to satellites without relying on mobile towers. The idea is to extend coverage to areas where terrestrial networks are weak or unavailable.
At the same time, the competition remains intense. Starlink, operated by SpaceX, already runs a massive constellation of around 10,000 satellites and serves more than nine million users globally. This scale gives Starlink a strong lead in both coverage and commercial reach. Amazon’s strategy now combines building its own infrastructure while integrating Globalstar’s system to close the gap faster, especially in rural and remote connectivity markets worldwide, especially in rural and remote connectivity markets worldwide.
Apple partnership and iPhone satellite services continue
Apple Inc. has played a central role in Globalstar’s growth, using its satellite network to power emergency features like Emergency SOS, location sharing, messaging to emergency services, and roadside assistance on supported iPhones and Apple Watches. Apple has also invested around $1.5 billion in Globalstar to support this ecosystem and expand its satellite capabilities.
Under the new structure, Amazon will continue supporting these services, ensuring that existing iPhone satellite features remain available while future upgrades are developed. Devices starting from iPhone 14 and newer Apple Watch Ultra models currently rely on Globalstar’s network when cellular coverage is not available, making it an important safety tool for users in remote areas.
The deal structure allows Globalstar shareholders to choose between $90 in cash or 0.3210 Amazon shares per stock, with a cap limiting cash payouts to 40% of the total transaction value. The agreement is expected to close in 2027, subject to regulatory approvals and the completion of key satellite deployment milestones.
Once completed, Globalstar will be absorbed into Amazon’s wider satellite ecosystem, which aims to expand direct-to-device communication and strengthen partnerships with mobile operators. For Apple users, the transition is designed to be seamless, while for Amazon it is a stronger entry into the growing satellite communications race that is increasingly shaping global connectivity.
