Amazon Acquires Globalstar for $11.6B to Challenge SpaceX's Starlink Dominance
In a major consolidation move within the satellite services sector, Amazon announced on April 14, 2026, a definitive agreement to acquire satellite operator Globalstar (GSAT) for $90 per share in cash or stock, representing a total deal value of approximately $11.57 billion. The transaction, expected to close in 2027, represents a massive valuation premium—roughly 40 times Globalstar's projected 2026 revenue—and signals Amazon's aggressive push to challenge SpaceX's dominant Starlink network (whose financials were recently disclosed in SpaceX S-1 Filing Unveils Starlink's Profitability and xAI's Staggering Losses).
Strategic Rationale: Boosting Amazon's "Leo"
Amazon is rebranding its satellite internet initiative from Project Kuiper to "Leo." The acquisition of Globalstar provides several critical advantages to Amazon's LEO network:
- Spectrum and Infrastructure: Amazon gains immediate access to Globalstar's 24-satellite constellation, global spectrum licenses, and ground infrastructure. This will allow Amazon to build out its own direct-to-device (D2D) satellite system, with deployment targeted for 2028.
- Catching Up to SpaceX: Starlink currently dominates the space-internet market with over 10,000 satellites in orbit and more than 10 million active subscribers. Amazon, by contrast, has faced launch delays and recently petitioned the FCC for an extension to meet its requirement of launching 1,600 satellites by July 2026 (having deployed only around 240 satellites so far).
The Apple Partnership and Ownership Transition
A highly unique aspect of the transaction is how it restructures Globalstar's relationship with Apple:
- Apple previously held a 20% equity and voting interest in Globalstar Licensee LLC, following a $1.5 billion investment in 2024 to power the iPhone's Emergency SOS satellite features.
- Amazon's acquisition will absorb Apple's 20% stake. Concurrently, Amazon has entered into a new agreement with Apple to continue providing satellite connectivity for current and future iPhone and Apple Watch models.
Regulatory Reception
The Federal Communications Commission (FCC) has expressed a favorable initial view of the transaction. FCC Chairman Brendan Carr noted that the agency is "very open-minded" to the acquisition because it has the potential to introduce a strong, capitalized competitor to SpaceX's Starlink in the direct-to-cell market. Carr emphasized that the FCC is taking an "all gas no brakes" approach to licensing and supporting next-generation space technologies.