Amazon is set to acquire satellite firm Globalstar for $11.6 billion. Apple currently holds a fifth stake in this venture. Following this revelation, Globalstar’s stock saw an 11% surge.
As reported by Bloomberg, Amazon has secured an agreement to purchase Globalstar for approximately $11.6 billion. This transaction is stated to be aimed at broadening the scope of Amazon’s satellite operations.
The company disclosed that shareholders of Globalstar have been presented with options: either receive $90 in cash per share or opt for 0.32 shares of Amazon stock, calculated to be worth up to $90 per paper. This offer represents a premium nearing 117% over the stock’s closing price in late October. The finalization of this deal is anticipated in 2027.
Furthermore, Amazon revealed its intention to enter the direct-to-device (d2d) market in 2028, a sector focused on enabling smartphones to connect directly with satellites, bypassing terrestrial networks.
In addition, Apple’s emergency messaging service is scheduled to transition to the Amazon Leo satellite network. Amazon is confident that securing Apple as a client will bolster Leo’s standing, as it currently trails behind SpaceX and its Starlink service in terms of partnership volume.
Amidst this news, Globalstar shares advanced by 11% in early New York trading, while Amazon’s stock gained 3%. Conversely, shares of competitor AST SpaceMobile experienced a decline of around 10%.
Currently, the Leo network has close to 200 satellites in orbit, which are undergoing limited commercial testing. Amazon’s long-term vision involves deploying over 7,700 of these units.
SpaceX and AST SpaceMobile currently dominate the satellite internet market. Starlink boasts more than 10 million users and has deployed nearly 10,000 satellites. Globalstar, meanwhile, provides satellite connectivity for the iPhone 14 series and subsequent devices, including the Apple Watch Ultra 3.
The Financial Times had previously reported in early April that Amazon was engaged in discussions to acquire Globalstar, which held a market capitalization nearing $9 billion at the time. According to the outlet, Apple, holding a 20% interest in Globalstar, was involved in the negotiations, a factor that might have influenced the final agreement.
Globalstar was established in 1991. Aside from Amazon, other entities expressed interest in acquiring the asset. As Bloomberg noted, in October 2025, Globalstar had entered into preliminary discussions regarding a potential sale with SpaceX and other interested parties.
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