Amazon Agrees $11.57 Billion Globalstar Acquisition for Spectrum Licences
Amazon has agreed to acquire Globalstar for $11.57 billion, gaining valuable spectrum licenses and device-to-device credentials through a deal expected to close in 2027. The acquisition targets Globalstar’s aging orbital infrastructure and existing IoT and government contracts but faces integration hurdles and Apple’s retention of 85% D2D capacity.
1. Deal Overview
Amazon will acquire Globalstar for $11.57 billion, with closing expected in 2027. The deal grants Amazon access to spectrum licenses and existing device-to-device (D2D) credentials. This marks Amazon’s second-largest acquisition by value and significantly expands its satellite connectivity footprint.
2. Strategic Rationale
By integrating Globalstar’s assets, Amazon aims to serve enterprise, government and IoT clients in areas lacking terrestrial coverage. Globalstar brings proven use cases—from maritime logistics and remote agriculture monitoring to SOS services for Apple devices—into Amazon’s AWS and consumer ecosystem. This move positions Amazon to compete directly with Starlink and other satellite providers.
3. Risks and Next Steps
Globalstar’s orbital infrastructure is aging and will require modernization and integration with Amazon’s planned antenna fleet, potentially increasing costs. Apple retains 85% of Globalstar’s D2D capacity, limiting Amazon’s immediate device connectivity reach. Regulatory approvals and technical integration must be completed by 2027, leaving a narrow window for execution.