Amazon acquires Globalstar for $11.57bn to compete with Starlink

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Updated 2 months ago

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Briefing

Amazon has agreed to acquire satellite operator Globalstar for $11.57bn, subject to regulatory approval. The transaction gives Amazon access to Globalstar's network of roughly two dozen satellites, accelerating its effort to build a low-earth-orbit internet service to rival SpaceX's Starlink, which operates approximately 10,000 satellites. Analysts have noted the deal will not resolve a rocket launch bottleneck that constrains Amazon's ability to scale its constellation. The acquisition is also seen as a potential boost to Apple's satellite ambitions, given Globalstar's existing relationship with Apple. Globalstar shares have quadrupled over the past twelve months and are approaching an 18-year high following the announcement.

Amazon buys Globalstar for $11.57bn

Amazon has agreed to acquire Globalstar in an $11.57bn deal that would significantly expand the company's low-earth-orbit satellite operations, as it seeks to mount a credible challenge to SpaceX's Starlink service.

The transaction, which remains subject to regulatory approval, hands Amazon control of Globalstar's existing constellation of approximately two dozen satellites. That is a fraction of the roughly 10,000 units Starlink currently has in orbit, but the acquisition would accelerate Amazon's ability to flesh out its own LEO network rather than build capacity from scratch.

Amazon has been developing its satellite internet ambitions under the Amazon Leo programme, and the Globalstar deal represents the most consequential step yet in that effort. The company is competing in a market where Starlink, operated by Elon Musk's SpaceX, holds a commanding lead in both scale and commercial momentum.

Analysts cautioned, however, that the acquisition does not address one of Amazon's more pressing structural constraints. According to Reuters, analysts say the deal will not fix a rocket launch bottleneck that limits how quickly Amazon can place additional satellites into orbit, tempering expectations about how rapidly the company can close the gap with Starlink.

While modest relative to Amazon's overall scale, the transaction has been characterised by analysts as an "important signal" that Amazon is committed to space, according to MarketWatch.

The deal is also expected to have implications for Apple. Bloomberg reports that the transaction is poised to boost Apple's satellite ambitions, a consequence of Globalstar's pre-existing role as the network provider underpinning Apple's Emergency SOS via satellite feature. A change in ownership could affect the terms and trajectory of that arrangement.

Globalstar shares surged on the announcement, moving toward an 18-year high. The stock has quadrupled over the past twelve months, according to MarketWatch, suggesting the market had begun pricing in some form of strategic transaction ahead of Tuesday's confirmation. The announcement also drew attention to other satellite operators, with analysts examining the potential read-across for AST SpaceMobile and Iridium.

The deal's competitive and regulatory dimensions will attract scrutiny. Consolidation in the satellite communications sector draws attention from spectrum regulators, and Amazon's scale means any significant acquisition invites antitrust review. No timeline for closing was disclosed in the initial announcements.

Analysis

Amazon acquiring Globalstar accelerates the competitive pressure on the SpaceX IPO narrative. Starlink's moat has been its scale advantage in LEO, but an Amazon-backed constellation with Globalstar's spectrum licenses and orbital slots creates a credible second infrastructure competitor. Institutional IPO allocators pricing the SpaceX offering on a near-monopoly basis in commercial LEO broadband must now discount that assumption, which compresses the justifiable valuation multiple at the June roadshow.
Globalstar's spectrum holdings are the strategic asset here, not its two-dozen-satellite constellation. The FCC review of this deal will turn on whether Amazon gains undue control over L-band and S-band allocations that would foreclose competing LEO operators. If the deal draws spectrum-access conditions, it sets a precedent that complicates Amazon's ability to use Globalstar's licenses as the backbone for Amazon Leo buildout, delaying the competitive threat to Starlink by years rather than months.

Connected Events

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SpaceX is targeting a June roadshow at a valuation that assumes Starlink's LEO dominance is durable. Amazon's Globalstar acquisition is the first concrete infrastructure move that challenges that assumption with a funded, spectrum-licensed competitor, arriving weeks before SpaceX needs institutional investors to commit capital.

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The broader pattern of large-scale consolidation in regulated infrastructure sectors, visible in the United Airlines approach to American Airlines, reflects an environment where acquirers believe the current administration will approve deals that prior regulators would have blocked. Amazon's move on Globalstar fits the same posture: a deal that the previous FCC framework would have scrutinized heavily on spectrum concentration grounds is now being attempted.

Amazon buys Globalstar for $11.57bn

Analysis

Connected Events

SpaceX targets early June roadshow for long-awaited IPO

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Amazon acquires Globalstar for $11.57bn to compete with Starlink