Amazon buys satellite firm Globalstar for $11.6 billion to challenge Musk's Starlink

Amazon has made a successful deal to acquire satellite telecommunication company Globalstar.

The acquisition is made for around $11.57 billion. This move directly aims at competing with Elon Musk’s Starlink in the ever-evolving space-based internet market.

This deal enables Amazon to access Globalstar’s existing network of two dozen low-Earth orbit satellites in addition to crucial radio frequency spectrum licenses.

The agreement is made public on Tuesday, April 15, announcing that Global shareholders can choose either $90 per share in cash or a portion of Amazon stock, capped at the same value.

The Globalstar network provides the "Emergency SOS via satellite" service on iPhones and Apple Watches. Under another deal, Amazon and Apple have agreed that Amazon’s satellite network, Amazon Leo, will keep delivering satellite-based safety services, such as emergency text, location sharing, and roadside assistance for eligible devices.

Amazon's satellite communications arm, Amazon Leo, intends to launch its second-generation D2D satellite network from 2028 onwards. Amazon currently has more than 200 satellites in orbit and seeks to deploy around 3,200 satellites by 2029.

Globalstar CEO Paul Jacobs stated, “We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime.”

The deal, which has already been approved by 58% of the voting shares in Globalstar, is anticipated to be finalized in 2027, contingent upon obtaining necessary regulatory clearances and satellite deployment benchmarks.