Amazon to Acquire Globalstar for $11.6B, Challenging Starlink's Satellite Dominance
Amazon has agreed to buy Globalstar for $11.57B, acquiring spectrum licenses and satellite expertise that position it against SpaceX's Starlink. The deal, expected to close in 2027, bolsters AWS's IoT connectivity offerings across enterprise, government, and remote applications.
1. Deal Terms and Timeline
Amazon has agreed to acquire Globalstar for $11.57 billion, marking its second-largest purchase to date. The transaction is set to close in 2027, accelerating Amazon's entry into the satellite services sector.
2. Strategic Satellite Expansion
Globalstar brings orbital spectrum licenses, direct-to-device credentials, and existing IoT connectivity use cases. These assets support enterprise, government and remote communication solutions across logistics, agriculture and maritime markets.
3. Integration Challenges and Risks
Integration will require modernizing Globalstar’s aging satellite infrastructure and coordinating with Apple, which retains 85% D2D capacity. Regulatory approvals are pending, presenting medium-term execution risks.
4. Competitive Market Impact
The acquisition intensifies competition with SpaceX’s Starlink in global satellite connectivity. It enables AWS to bundle satellite IoT services with cloud offerings, expanding reach into new industries.