Amazon Inc. has unveiled plans to acquire satellite communications company Globalstar in a deal valued at approximately $11.57 billion. The acquisition, announced on March 14, is set to significantly bolster Amazon's low-Earth orbit (LEO) satellite ambitions under its 'Amazon Leo' initiative, pushing connectivity beyond traditional cellular networks.
Strategic Expansion of LEO Network
The acquisition grants Amazon access to Globalstar’s established satellite infrastructure, crucial spectrum licenses, and robust mobile satellite services capabilities. This integration is expected to enable Amazon Leo to deliver continuous voice, data, and messaging services, particularly to users in remote and underserved areas globally.
Panos Panay, Senior Vice President of Devices & Services at Amazon, emphasized the customer benefits: “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.”
Powering Apple's Satellite Features
A key aspect of this deal involves Amazon powering Apple’s existing and future satellite-enabled features on devices like the iPhone and Apple Watch. This includes critical services such as Emergency SOS via satellite, messaging, location sharing, and roadside assistance, which currently rely on Globalstar’s satellite constellation.
Greg Joswiak, Senior Vice President of Worldwide Product Marketing at Apple, expressed optimism about the continued collaboration: “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.”
Next-Generation Direct-to-Device Connectivity
Looking ahead, Amazon plans to roll out a next-generation direct-to-device (D2D) satellite system beginning in 2028. This advanced system aims to provide direct voice, text, and data connectivity with satellites, circumventing the need for ground-based cellular towers. The company anticipates this will offer higher efficiency, faster speeds, and broader coverage than current solutions.
Financial Details and Closing Timeline
Under the terms of the merger, Globalstar shareholders have the option to receive either $90 in cash or shares of Amazon stock per share. The cash payout is capped at 40% of total shares, with any excess automatically converting into stock. The overall deal value could see a reduction of up to $110 million if Globalstar does not meet specific operational milestones.
The transaction has already received approval from shareholders holding approximately 58% of Globalstar’s voting power. Subject to regulatory approvals and the completion of satellite deployment targets, the acquisition is anticipated to close in 2027.