Amazon Takes On Elon Musk’s Starlink With $11.6-Billion Globalstar Deal

Amazon is stepping up its push into satellite communications with a $11.6-billion deal to acquire Globalstar. The company will fund the purchase through a mix of stock and cash, offering shareholders up to $90 per share.

The acquisition is expected to strengthen Amazon’s Low-Earth Orbit (Leo) satellite ambitions as it looks to challenge Elon Musk’s Starlink.

Amazon plans to launch a direct-to-device (D2D) service by 2028 that will allow mobile phones to connect straight to satellites, without depending on traditional cell towers. Under the deal, it will also take over Globalstar’s satellite operations, infrastructure and other assets, including spectrum licences with global approvals. Globalstar’s existing and upcoming satellites will continue to run alongside Amazon’s own network.

Deal Structure

Amazon has given Globalstar shareholders a couple of options under the deal. They can either take $90 in cash per share, or go for 0.32 shares of Amazon stock, with the value capped at $90 per share.

The offer represents a nearly 117% premium over Globalstar’s share price in late October 2025, when reports of a possible sale surfaced.

Shareholders can also mix cash and stock if they prefer, though the cash payout will be adjusted based on overall demand, with a cap so that no one gets more than 40% in cash.

The deal would be Amazon’s second-largest after its Whole Foods acquisition and is expected to close in 2027.

How Apple Fits Into Amazon’s Satellite Push

Amazon said that Apple’s emergency messaging service will transition to Amazon Leo, its newly rebranded satellite broadband network. Landing Apple as a customer could be an important win for Amazon Leo, which has so far lagged behind Starlink in signing big commercial partners.

In 2024, Apple had taken a 20% stake in Globalstar as part of a $1.5-billion investment to strengthen its satellite network and ground systems. Globalstar currently runs about 24 satellites and powers Apple’s Emergency SOS feature, which lets users send messages from remote areas without mobile coverage.

Why This Deal Matters

Amazon has been trying for years to find its place in satellite services as it looks beyond its core retail and cloud businesses. The Globalstar deal is a big step in that direction.

At the same time, it is working to close the gap with SpaceX’s Starlink, which is currently far ahead in the market. Starlink already has more than 10,000 satellites in orbit and serves over nine million users worldwide. In comparison, Amazon Leo has around 200 satellites in space and is still in limited testing, though it plans to eventually scale up to more than 7,700 satellites.

With direct-to-device connectivity growing fast, it is becoming one of the most competitive areas in satellite communications. It is also setting the stage for a more intense battle between Amazon and SpaceX in the years ahead.

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