Amazon’s $11.57 Billion Globalstar Deal Secures Spectrum for AWS Leo
Amazon agreed to buy Globalstar for $11.57 billion, acquiring valuable frequency licenses, D2D credentials and IoT connectivity assets to challenge Starlink. The transaction—Amazon’s second-largest deal—boosts its integrated Leo offering within AWS for enterprise and government use, with closure expected in 2027.
1. Deal Overview
Amazon has agreed to acquire satellite operator Globalstar for $11.57 billion, its second-largest acquisition by value. The deal grants Amazon access to key spectrum licenses and existing D2D credentials, bypassing lengthy regulatory processes to fast-track satellite IoT connectivity.
2. Strategic Implications
By integrating Globalstar’s infrastructure and frequency holdings into its AWS ecosystem, Amazon aims to position its Leo satellite initiative as a comprehensive connectivity solution for enterprise, government and IoT customers. This move intensifies competition with SpaceX’s Starlink and bolsters Amazon’s cloud services.
3. Financial Details and Risks
Closure of the transaction is expected in 2027, by which time Globalstar’s aging orbital infrastructure will require integration and potential modernization. The $11.57 billion purchase carries execution risk and hinges on Amazon aligning Apple’s retained D2D capacity and addressing longer-term orbital data center ambitions.