Amazon’s $11.6B Globalstar Bid Targets Starlink

Amazon has agreed to acquire satellite operator Globalstar in a deal valued at roughly $11.5 billion to $11.6 billion, according to multiple announcements on April 14. The consideration totals $11.57 billion in cash and stock in several reports, and about $11.6 billion in others.

Globalstar shareholders can elect to receive $90 per share in cash or 0.3210 shares of Amazon common stock per Globalstar share (subject to a VWAP-based adjustment), with the stock consideration capped at a value of $90. Cash elections are limited to 40% of total shares, with any excess converted into stock.

Sources describe the offer as implying a premium ranging from about 23.5% over the prior close to 117% over Globalstar’s late-October 2025 price, when sale reports first surfaced. The deal is subject to up to $110 million in downward adjustment if Globalstar misses specified operational milestones.

The transaction has already received written consent from Globalstar stockholders representing roughly 58% of combined voting power. Amazon and Globalstar expect the acquisition to close in 2027, pending regulatory approvals.

Following the announcement, Amazon shares traded higher, with moves cited between roughly 1.2% premarket and a 5% intraday gain to $252, leaving the stock up about 8% year‑to‑date. Globalstar shares jumped between 9% and more than 10%, moving toward the $90 offer price.

Several reports note that Globalstar’s stock had already risen sharply ahead of the deal on sale speculation, including gains of more than 75% since late October and a 273% rise over the past year. One article cites a pre‑deal market capitalization near $7.6 billion.

For Amazon, the $11.57 billion price tag represents less than 0.5% of its trailing enterprise value in one analysis and can be funded from trailing 12‑month levered free cash flow of $23.79 billion. Another source points to Amazon’s planned $200 billion in 2026 capex and strong AWS and advertising growth as support for absorbing the deal.

The acquisition will fold Globalstar’s satellite operations, ground infrastructure and mobile satellite licenses into Amazon Leo, formerly known as Project Kuiper. Amazon plans a low‑Earth‑orbit constellation of more than 3,200 to 7,700 satellites, targeting broadband and direct‑to‑device services.

Globalstar brings a functioning network of about two dozen low‑Earth‑orbit satellites today, with more than 24 cited in some reports and contracts for 50‑plus additional satellites being built by MDA Space. Its globally harmonized Band 53/n53 spectrum is described as a key asset licensed across more than 120 countries.

Amazon Leo currently has roughly 180–200 to more than 240 satellites in orbit, depending on the source, far short of its planned thousands. Amazon has asked the U.S. Federal Communications Commission for extra time on a milestone requiring about 1,600 satellites by a July deadline.

Management and analysts say integrating Globalstar could provide Amazon with quicker access to coverage in remote and low‑coverage areas and help support voice, data and messaging services for consumers, enterprises, IoT devices and governments.

Globalstar currently underpins satellite features such as Emergency SOS, Messages, Find My and Roadside Assistance on iPhone 14 and newer models and Apple Watch Ultra 3. Apple (AAPL) invested about $1.5 billion in Globalstar in 2024, taking roughly a 20% stake and priority access to 85% of the network’s capacity.

As part of the deal, Amazon Leo will assume responsibility for powering these iPhone and Apple Watch satellite features under a parallel service agreement with Apple (AAPL). Apple and Amazon announced that this arrangement will maintain continuity for existing users.

Apple executive Greg Joswiak said the agreement ensures users continue to have access to the satellite features they rely on when off the grid. Several reports indicate this structure resolved a key issue that had complicated Globalstar sale talks given Apple’s ownership and capacity rights.

The Globalstar acquisition is widely framed as a move to challenge SpaceX’s Starlink in satellite broadband and emerging direct‑to‑device services. Amazon plans to launch its own direct‑to‑device system in 2028, aiming to support “hundreds of millions” of users at full buildout.

SpaceX’s Starlink is described as having around 10,000 satellites in orbit and more than 9–10 million active customers, with expected revenue above $9 billion this year. Both companies are targeting customers from airlines and cruise ships to remote businesses and unserved populations.

Analysts note that Globalstar’s network is optimized for direct connections to mobile devices, whereas Starlink has focused on broadband and is developing similar direct‑to‑device capabilities. Amazon has also signed Delta Air Lines (DAL) as a customer for in‑flight Wi‑Fi via Leo.

Despite Globalstar’s assets, analysts highlight that Amazon remains constrained by rocket launch capacity. Amazon has deployed 243 of the 3,236 satellites it promised in 2019 and has relied on third‑party rockets, including SpaceX’s Falcon 9, while Blue Origin’s New Glenn has not yet reached a high‑cadence launch schedule.

The deal is expected to draw scrutiny from global regulators, including the U.S. FCC, which is already reviewing Amazon’s extension request on deployment milestones and broader constellation plans. FCC Chair Brendan Carr said he is “very open‑minded” about the Globalstar acquisition and noted its potential to add competition in an emerging market.

Industry sources cited in one report expect resistance from SpaceX, which had previously held talks with Globalstar about a possible sale. Another article notes that SpaceX explored its own Globalstar acquisition in November 2025, underscoring the strategic importance of the spectrum and satellite assets now going to Amazon.

Commentary from academic and market analysts emphasizes that even with Globalstar, Amazon is still “playing catch‑up” to Starlink on deployment scale and launch cadence. They argue Amazon must resolve launch access and speed if it is to close the structural gap in satellite coverage.