Amazon has officially announced plans to acquire Globalstar. The deal, valued at US$11.57 billion, also sees Amazon secure a partnership with Apple to power satellite features on iPhones and Apple Watches.
The acquisition is part of Amazon’s plans to accelerate the rollout of direct-to-device (D2D) connectivity service for Amazon Leo, the retail giant’s low Earth orbit (LEO) satellite network. With the addition of Globalstar’s satellite assets, spectrum, Amazon aims to deliver voice, text, and data services directly to smartphones to rival SpaceX’s Starlink Mobile service.
However, SpaceX has a significant headstart. Amazon says its next-generation D2D system isn’t expected to begin launching until 2028.
With the acquisition, which we first reported on last week, Amazon is betting that integrating Globalstar’s infrastructure and spectrum with its own large-scale satellite plans will allow it to close the gap to SpaceX quickly.
The partnership with Apple adds another layer of importance to the announcement. Apple, with its 20% ownership stake in Globalstar, already relies on satellite connectivity for features like Emergency SOS for its iPhone and Apple Watch. Under the new agreement, Amazon Leo will eventually become the backbone for these services.
Still, the scale of the investment raises questions. At over $11 billion, Amazon is making a substantial financial commitment in a sector that is still evolving. Whether that investment pays off will depend on execution, regulatory approvals, and how quickly Amazon can bring its D2D services to market.
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