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Amazon.com announced its plan to acquire Globalstar for $11.57 billion, enhancing its satellite technology portfolio as it aims to compete with Elon Musk’s Starlink. Following the news, Globalstar’s shares surged over 9% during premarket trading, building on a 6% rise over the past two weeks amid media reports of ongoing discussions. The stock nearly doubled last year and is up approximately 12% in 2023 before the acquisition was announced. Amazon’s stock experienced a modest 1% increase on Tuesday.
This acquisition grants Amazon access to Globalstar’s fleet of about 24 satellites, advancing its goal to challenge SpaceX’s Starlink, which currently operates around 10,000 satellites. Under the terms, Globalstar shareholders can opt to receive either $90 in cash or 0.3210 shares of Amazon stock for each Globalstar share they hold.
Amazon has committed to deploying roughly 3,200 satellites in low Earth orbit by 2029, with about half of that number in orbit by a regulatory deadline in July 2026. The company already manages a network of more than 200 satellites and plans to roll out satellite internet services later this year. Meanwhile, Starlink continues to be the dominant satellite internet provider, serving over nine million customers globally.
Globalstar, based in Covington, Louisiana, is well known for powering Apple’s “Emergency SOS” feature and operates about two dozen low-Earth orbit satellites. Last year, the company announced plans to expand this network to 54 satellites, including backups, with support from Apple. The firm delivers voice, data, and asset-tracking services to enterprise, government, and consumer clients.
In tandem with the acquisition, Amazon and Apple— which has invested around $1.5 billion in Globalstar— agreed to continue providing satellite-based safety features like Emergency SOS and Find My for iPhone and Apple Watch users.
The deal’s completion is targeted for next year, contingent upon regulatory approvals and Globalstar reaching specific satellite deployment milestones.
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