- Amazon said it will acquire Globalstar for $90 per share in a deal valued at about $11.57 billion
- The deal includes a partnership with Apple, which has been using Globalstar’s satellites for its SOS text service
- Amazon is targeting early 2028 for the launch for its direct-to-device satellite service
And the winner in the race for Globalstar is… Amazon!
Fierce previously reported that SpaceX appeared to be the frontrunner. Then a report surfaced that Amazon was in talks to buy the satellite telecom company. Now it’s officially official: Amazon is buying Globalstar in a $11.57 billion deal that will give the tech giant a bigger boost in its rivalry with Starlink.
Under the deal, Amazon will get access to Globalstar’s constellation of 24 satellites, which will co-exist with Amazon’s Leo broadband system and planned direct-to-device (D2D) satellite system.
“By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places – keeping them connected to the people and things that matter most,” said Amazon Senior Vice President of Devices & Services Panos Panay in a statement.
Of course, Apple is a big part of all of this. Globalstar provides satellite connectivity for Apple’s SOS service for iPhone 14 and later devices, as well as the Apple Watch Ultra 3. In addition to the deal with Globalstar, Amazon sealed a deal with Apple to supply satellite connectivity for current and future iPhone and Apple Watch services.
“Apple and Amazon have a long and proven track record of working together through Amazon’s core infrastructure services, and we look forward to building on that collaboration with Amazon Leo,” Apple Senior Vice President of Worldwide Product Marketing Greg Joswiak said in a statement.
Amazon expects to deploy its own D2D system in early 2028, according to today’s press release.
Globalstar stockholders will choose to receive either $90 in cash or 0.3210 shares of Amazon common stock, with a value capped at $90 per share, for each share of Globalstar common stock they own.
The transaction is expected to close in 2027.
FCC chair weighs in
The deal will need the approval of the Federal Communications Commission (FCC), and that appears likely. During an appearance on CNBC today, FCC Chairman Brendan Carr said “we’re very open minded” about the deal.
“Ultimately, we’ll have to take a look at the paperwork and see, but it’s consistent with the long-term vision that we have to make sure the U.S. leads in this next-gen era of direct-to-cell technologies,” Carr said.
Satellite industry analyst Tim Farrar, founder of TMF Associates, said internationally, the deal may be more complicated and face tougher regulatory scrutiny, but it’s unlikely to encounter difficulties at the FCC or Department of Justice (DoJ).
It’s also a positive move as Amazon seeks FCC approval for an extension of its July broadband satellite buildout deadline. The company is seeking a 24-month extension and now promises to launch all of its 3,232 planned satellites by a final deadline of July 30, 2028.
“They're waiting for this approval of the extension to their constellation buildout and I think this, if anything, may potentially help them with the FCC on that because it demonstrates their commitment to the space business, making another $11 billion investment, plus potentially billions of dollars more to build out the constellation,” Farrar said. “The FCC is clearly keen on further investment in space and more competition where that is possible.”
Satellite bundles
Interestingly, while there’s a move in the terrestrial industry to bundle fixed and mobile services, the same can be said of satellites. Starlink is able to offer broadband via its constellation of 10,000 satellites and it has about 650 satellites in orbit for D2D, which is what it’s supplying T-Mobile for its T-Satellite service.
With the purchase of Globalstar, “Amazon appears to want to do likewise,” Farrar said. “It doesn’t necessarily directly aid the broadband business. In fact, in some ways, you could argue it might be somewhat of a distraction if they have to go and build different satellites to operate with the Globalstar spectrum, in addition to what they’re already trying to do in broadband.”
However, it allows Amazon to compete if there is demand for a bundle of fixed and mobile services via satellite. “We just don’t know what the size of that market is and so far, not very many people have been willing to pay for the Starlink direct-to-cell service,” he said.
The value of Globalstar’s spectrum
CCS Insight analyst Luke Pearce agreed that the Globalstar deal strengthens Amazon’s long-term ability to compete more directly with Starlink, which is already active across both fixed broadband and D2D services.
A key driver of the deal is spectrum. Globalstar controls a portion of the S-band mobile-satellite service (MSS) spectrum, which is highly valuable due to its global harmonization and limited interference with terrestrial networks, Pearce said.
“With competition for this limited spectrum intensifying, evidenced by SpaceX’s $17 billion move to secure MSS spectrum rights from EchoStar and ongoing activity from players such as Satellite Connect Europe, acquiring Globalstar provides Amazon with a critical strategic asset,” Pearce said.
Globalstar’s XCOM RAN plan
One big unknown is what happens with Globalstar’s XCOM RAN platform for private wireless networks, which is based on technology that Globalstar bought in 2023 when XCOM Labs founder and former Qualcomm CEO Paul Jacobs joined the company as CEO.
Amazon is buying all the equity of Globalstar and its subsidiaries. “That doesn't mean that they will keep all of those businesses going forward,” Farrar said. “There's a lot that's undefined right now … We don't know what they want to do with XCOM and whether that would just be spun back off to Paul Jacobs or whether it would continue on with Globalstar. My expectation is that Amazon might give less priority to exploiting the spectrum terrestrially.”
This story has been updated with additional commentary.