Amazon reached agreement to acquire Globalstar in an $11.57bn all-cash deal, its second-largest acquisition by value. The purchase includes key spectrum licenses, frequency allocations and direct-to-device network capabilities, of which Apple retains 85% capacity for its devices.

The deal positions Amazon to compete directly with SpaceX’s Starlink across enterprise, government and IoT markets by integrating Globalstar’s low-Earth orbit network with AWS cloud services. It enables bundled offerings combining satellite connectivity, data analytics and cloud-based applications for remote operations.

Amazon faces integration challenges including modernizing aging orbital infrastructure, merging antenna networks and securing regulatory approvals, with closure expected in 2027. The company must also navigate competition dynamics and justify the $11.57bn valuation amid Apple’s retained capacity and evolving satellite technologies.