Amazon announced that it will officially acquire LEO satellite operator Globalstar in a deal valued at up to US$11.5 billion as part of its strategy to enter the direct-to-device (D2D) satellite sector.
As part of the agreement – rumours of which have been circulating since the beginning of this month – Amazon will acquire Globalstar’s existing satellite operations, infrastructure and assets, including its mobile satellite services (MSS) spectrum licenses with global authorizations.
Globalstar currently operates 31 LEO satellites, including seven HIBLEO-4 satellites licensed by the US and 24 HIBLEO-X satellites licensed by France. Globalstar is currently in the process of replacing its HIBLEO-4 fleet with 17 new satellites supplied by MDA Space.
Amazon said Globalstar’s existing satellite fleet and its new satellites with expanded MSS capabilities will operate alongside its LEO satellite constellation, enabling its Amazon Leo unit to add D2D to its service portfolio ahead of its own planned next-gen D2D satellite system, which is scheduled to start deploying in 2028.
Amazon said its D2D LEO system will offer substantially higher spectrum use and efficiency than existing D2D systems, which translates into faster speeds and better performance for customers. It will also integrate seamlessly with Amazon’s first- and second-generation LEO systems, combining fixed and mobile satellite services to support a wide range of customers and use cases.
Financial breakdown
The financial terms of the deal give Globalstar stockholders a choice between US$90.00 in cash per share of Globalstar common stock they own, or 0.3210 shares of Amazon common stock with a value capped at $90.00 per share. Amazon said Globalstar stockholders holding around 58% of the combined voting power of the outstanding shares of Globalstar common stock have approved the transaction in writing.
The transaction is expected to close in 2027, pending the usual regulatory approvals. The deal also hinges on Globalstar staying on track with its HIBLEO-4 replacement plan.
“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,” said Panos Panay, Amazon’s SVP of devices and services, in a statement.
“The combination [of Globalstar] with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world,” added Globalstar CEO Paul Jacobs.
D2D satellite race
The acquisition essentially enables Amazon Leo to get into the D2D satellite game earlier, as rivals like Starlink have already launched commercial services in a handful of markets.
It also gives Amazon Leo access to MSS spectrum that is already allocated and licenced, which MSS satellite players argue gives them an edge in the D2D race over operators such as Starlink, Lynk Global and AST Spacemobile that use existing terrestrial mobile network spectrum.
D2D satellite has been pitched in the past couple of years as a way to bring mobile voice and data services to underserved and unserved areas, particularly in emerging markets.
However, mobile operators from emerging markets warned at this year’s Mobile World Congress that the regulatory environment has not kept pace with the rise of D2D, which creates risks for terrestrial mobile operators.
Satellite operators themselves have expressed similar concerns over regulatory readiness for D2D services.
Apple iPhones to stay connected
On a side note, Amazon also announced on Tuesday that it has signed an agreement with Apple to continue to provide satellite connectivity via the Globalstar network for current and future iPhone and Apple Watch features.
That agreement is an extension of a current partnership established in 2022 between Globalstar and Apple to power satellite service on iPhone 14 or later, as well as Apple Watch Ultra 3, allowing users to text emergency services, message friends and family, request roadside assistance and share their location.
Apple currently owns a 20% equity stake in Globalstar, which it bought in November 2024 as part of a deal to invest US$1.5 billion in Globalstar to fund its new satellites.
