Amazon Expands Project Leo with $11.57B Globalstar Acquisition
Amazon will acquire Globalstar for $11.57 billion to expand its low-Earth-orbit broadband unit, Project Leo, positioning itself as a direct challenger to SpaceX’s Starlink. The purchase follows sector valuations decline and could intensify competition with telecoms as satellite broadband demand surges.
1. Deal Terms
Amazon announced it will acquire Globalstar for $11.57 billion in an all-cash transaction. The deal will integrate Globalstar’s 24 low-Earth-orbit satellites into Amazon’s Project Leo network to enhance global broadband coverage.
2. Strategic Rationale
The acquisition strengthens Amazon’s satellite division by adding network capacity and spectrum assets, accelerating Project Leo’s deployment timeline. It also aims to diversify Amazon’s connectivity offerings beyond AWS cloud services into consumer broadband.
3. Competitive Landscape
By combining Globalstar’s infrastructure with Project Leo, Amazon directly challenges SpaceX’s Starlink, which has become a significant revenue source for its parent. Traditional telecom operators may face new competition in underserved regions as Amazon scales its low-orbit broadband network.