Amazon announced it will acquire Globalstar for $90 per share in a deal valued at approximately $11.5 billion, as part of its strategy to expand its Leo satellite internet business and compete with SpaceX's Starlink service [1]. The transaction allows Globalstar shareholders to choose between $90 in cash or 0.3210 shares of Amazon common stock for each Globalstar share they own, with the deal expected to close in 2027 [1].
The acquisition will provide Amazon with Globalstar's satellite operations, infrastructure, assets, and certain spectrum licenses with global authorizations. Amazon plans to integrate Globalstar's new and existing satellite fleet with its own network, aiming to launch its direct-to-device satellite system in 2028 [1]. Panos Panay, Amazon's senior vice president of devices and services, stated that the combination of Globalstar's expertise with Amazon's innovation will deliver faster, more reliable service to customers worldwide [1].
Following the announcement, Globalstar shares surged over 9% in premarket trading, while Amazon's stock rose about 1% [1]. The deal is seen as a significant move for Amazon as it seeks to catch up with SpaceX, whose Starlink service currently leads the market with more than 10,000 satellites in orbit and over 9 million users [1]. Amazon has launched over 240 satellites since April of the previous year and recently rebranded its satellite internet service from Project Kuiper to Leo [1].
The acquisition is expected to bolster Amazon's competitive position in the satellite internet sector, particularly as it prepares to deploy its direct-to-device system and expand its global connectivity offerings [1].
CONCLUSION
Amazon's $11.5 billion acquisition of Globalstar marks a major step in its efforts to challenge SpaceX's dominance in the satellite internet market. The deal provides Amazon with critical assets and infrastructure, positioning it to accelerate the deployment of its Leo satellite network and direct-to-device services. Market reactions were positive, reflecting investor confidence in Amazon's strategic expansion.