Amazon’s $11.6 B Globalstar Purchase Strengthens Enterprise Satellite Connectivity Rivalry
Amazon agreed to acquire Globalstar for $11.57 billion to secure valuable frequency licenses and existing IoT use cases. The transaction, expected to close in 2027, accelerates Amazon’s push into satellite connectivity for enterprise, government and remote operations, directly challenging SpaceX’s Starlink.
1. Deal Overview
Amazon announced a definitive agreement to acquire Globalstar for $11.57 billion, marking its second-largest acquisition by value. The deal, subject to regulatory approvals and closing in 2027, delivers ownership of Globalstar’s orbital infrastructure and frequency licenses without lengthy new filings.
2. Strategic Implications
The acquisition grants Amazon immediate credibility in satellite connectivity, leveraging Globalstar’s existing enterprise and IoT customer base across maritime, agriculture, logistics and government sectors. By bundling satellite services into its AWS ecosystem, Amazon positions itself as a direct competitor to SpaceX’s Starlink for mission-critical connectivity.
3. Risks and Challenges
Globalstar’s aging satellite fleet requires integration with Amazon-branded ground antennas and coordination with Apple, which retains 85% of device-to-device capacity. Amazon must also navigate potential delays in orbital data-center projects and manage the complexity of merging Globalstar’s operations into its broader cloud and satellite ambitions.