Amazon to Acquire Globalstar for $11.57B to Boost Satellite and IoT Services
Amazon agreed to buy Globalstar for $11.57 billion, securing valuable spectrum licenses and satellite expertise to enhance its AWS and IoT connectivity services. The deal, Amazon’s second-largest acquisition by value, is expected to close in 2027 and positions it as a direct competitor to SpaceX’s Starlink.
1. Deal Overview
Amazon has struck an agreement to acquire Globalstar for $11.57 billion, marking its second-largest purchase ever. The transaction is slated to close in 2027 after regulatory approvals, immediately granting Amazon ownership of Globalstar’s satellite network and D2D spectrum licenses.
2. Strategic Rationale
By adding Globalstar’s existing orbital infrastructure and frequency assets, Amazon aims to bundle satellite IoT, connectivity and AWS cloud services into a unified offering. This move expands Amazon’s reach into enterprise, government and remote-area customers who require reliable connectivity beyond terrestrial networks.
3. Competitive Impact
The acquisition intensifies competition with SpaceX’s Starlink and challenges other cloud rivals by embedding satellite services within the Amazon ecosystem. It bolsters AWS’s positioning in defense tech, logistics, maritime and agriculture markets that rely on direct-to-device communication.
4. Risks and Challenges
Globalstar’s aging satellite fleet will require integration with Amazon’s planned antenna network, and Apple retains 85% of D2D capacity on Globalstar. Additional hurdles include potential regulatory delays, infrastructure upgrades and execution of Jeff Bezos’s broader TeraWave orbital data center project.