The acquisition represents a major step in Amazon’s broader push into low Earth orbit connectivity under its Amazon Leo initiative, positioning the company to accelerate its presence in the rapidly evolving space-based communications market. Globalstar, which operates a network of low Earth orbit satellites, is widely known for enabling satellite-based emergency features on Apple devices, including iPhones and Apple Watches.
As part of the agreement, Amazon will continue supporting these services through an updated arrangement, ensuring uninterrupted access to safety features such as emergency SOS, location sharing, messaging to emergency services, and roadside assistance for existing users. This continuity is critical for Apple customers who rely on satellite connectivity in areas without cellular coverage.
Amazon has already launched more than 200 satellites as part of its long-term plan to build a constellation of approximately 3,200 satellites by 2029. The company also faces regulatory requirements to deploy a significant portion of this network by July 2026, increasing the urgency of its rollout efforts. By acquiring Globalstar, Amazon gains immediate access to an operational satellite network, strengthening its ability to deliver direct-to-device connectivity without relying on traditional mobile infrastructure.
The competitive landscape remains dominated by Starlink, operated by SpaceX, which currently maintains a fleet of roughly 10,000 satellites and serves more than nine million users worldwide. This scale gives Starlink a significant advantage in coverage and market reach. Amazon’s strategy combines building its own infrastructure with integrating Globalstar’s existing capabilities to close that gap more quickly, particularly in rural and underserved regions.
Apple has played a central role in Globalstar’s growth, investing approximately $1.5 billion to support satellite-based services across its ecosystem. Under Amazon’s ownership, these services are expected to continue without disruption, with potential enhancements as satellite technology evolves. Devices such as the iPhone 14 and newer Apple Watch Ultra models currently rely on Globalstar’s network when cellular coverage is unavailable, making it a critical safety tool.
The transaction allows Globalstar shareholders to choose between $90 in cash or 0.3210 Amazon shares per stock, with cash payouts capped at 40% of the total deal value. The acquisition is expected to close in 2027, subject to regulatory approvals and the completion of key satellite deployment milestones.
Once finalized, Globalstar will be integrated into Amazon’s broader satellite ecosystem, supporting the company’s goal of expanding global connectivity and strengthening partnerships with mobile operators. The move underscores intensifying competition in the satellite internet sector, as major technology companies invest heavily in infrastructure that could reshape how users access communication services worldwide.
