Amazon to Acquire Globalstar for $11.57B, Challenging Starlink’s Market Lead
Amazon will acquire Globalstar for $11.57 billion, securing satellite spectrum licenses, D2D credentials, and existing enterprise IoT contracts. The deal, Amazon’s second-largest ever, positions it against SpaceX’s Starlink in government and remote connectivity markets, with the transaction expected to close in 2027 after regulatory approvals.
1. Deal Overview
Amazon has agreed to buy Globalstar in an $11.57 billion transaction, marking its second-largest acquisition by value. The deal secures Globalstar’s satellite network, frequency spectrum licenses and D2D credentials, and is slated to close in 2027 after satisfying regulatory and stakeholder conditions.
2. Strategic Rationale
By acquiring Globalstar, Amazon gains immediate satellite credibility and entry into enterprise, government and IoT connectivity markets. The acquisition allows bundling of AWS cloud services with Globalstar’s existing use cases in maritime, logistics, agriculture and remote infrastructure monitoring.
3. Competitive Impact
The move positions Amazon as a direct rival to SpaceX’s Starlink and AST SpaceMobile in global satellite connectivity. Amazon can leverage its cloud ecosystem to offer integrated satellite IoT and data services, potentially capturing customers where terrestrial networks are unavailable.
4. Risks and Integration Challenges
Globalstar’s aging orbital fleet will require antenna upgrades and integration with Amazon’s ground infrastructure, while Apple’s 20% stake retains 85% D2D capacity for its devices. Delays in orbital data center launches and shifting industry dynamics pose further execution risks.