Amazon to Buy Globalstar for $11.57 Billion to Expand Satellite Network
Amazon agreed to acquire Globalstar in an $11.57 billion deal to integrate Globalstar’s satellite assets into its fleet of over 200 satellites and secure L-band spectrum for direct-to-device connectivity. The move accelerates Project Kuiper expansion, enhances D2D services and strengthens Amazon’s position to challenge Starlink’s larger network.
1. Deal Structure and Rationale
Amazon will pay $11.57 billion in an all-cash transaction to acquire Globalstar, adding its current satellite assets and ground infrastructure to Amazon’s fleet of over 200 satellites. This deal secures L-band and MSS spectrum licenses crucial for direct-to-device connectivity and expands emergency SOS service support.
2. Enhancing Satellite Fleet and Services
The acquisition accelerates Project Kuiper deployment by boosting spectrum capacity and offering direct-to-device (D2D) communication services without reliance on terrestrial towers. Amazon plans to integrate Globalstar’s network to provide mobile devices with satellite links, strengthening its space-based broadband offerings.
3. Competitive and Regulatory Considerations
Amazon’s move positions it more competitively against SpaceX’s Starlink, which currently operates a larger LEO network serving millions of customers. The transaction will require regulatory approval from federal agencies, with investors watching permit timelines and potential antitrust reviews.