Amazon’s Acquisition of Globalstar also Includes a Deal With Apple
US technology giant Amazon has announced the acquisition of satellite operator Globalstar. The deal, valued at approximately $10.8 billion, is set to significantly expand Amazon’s satellite network Amazon Leo and enable the company to communicate directly with smartphones. At the same time, a partnership with Apple was announced, securing satellite services for the iPhone and Apple Watch.
The Acquisition of Globalstar
Globalstar was founded in 1991 and is a Louisiana-based provider of mobile satellite services. The company operates a network of satellites in low Earth orbit and is considered a pioneer of so-called Direct-to-Device technology (D2D), which enables mobile devices to connect directly via satellite without routing through terrestrial cell towers.
As part of the transaction, Amazon is acquiring all of Globalstar’s satellite assets, infrastructure, and frequency licenses, which include globally valid permits. Globalstar shareholders may receive either $90.00 in cash or 0.3210 Amazon shares per share, with the cash portion capped at a maximum of 40 percent of total shares. The transaction is expected to close in 2027, subject to regulatory approvals.
“We have long believed that low Earth orbit satellite constellations offer the most effective way to connect users and devices anywhere, at any time,” said Paul Jacobs, CEO of Globalstar.
Amazon’s Competition with SpaceX Starlink
With this acquisition, Amazon is strengthening its entry into a market currently dominated by Elon Musk’s SpaceX and its Starlink service. Starlink already has several thousand satellites in orbit and serves millions of customers worldwide. SpaceX also filed for an IPO this month that could rank among the largest in history. Amazon Leo is still in an early phase and has not yet launched any commercial services.
Apple’s Role in the Deal
Alongside the Globalstar acquisition, Amazon has entered into a separate agreement with Apple. Globalstar has until now been the satellite provider behind Apple’s emergency features on the iPhone 14 and later models, as well as the Apple Watch Ultra 3. These features include, among others:
- Emergency SOS via Satellite
- Messages to friends and family via satellite
- Location sharing via Find My
- Roadside assistance via satellite
Under the new agreement, Amazon takes over the provision of these services and ensures their continuity for existing and future iPhone and Apple Watch models. Apple and Amazon are also working together on future satellite services based on the expanded Amazon Leo network.
“Since its launch more than three years ago, our groundbreaking safety service Emergency SOS via Satellite has saved many lives around the world,” said Greg Joswiak, Senior Vice President of Worldwide Product Marketing at Apple.
What Is Planned from 2028 Onwards
Amazon has announced plans to operate its own next-generation D2D satellite system starting in 2028. This system is intended to be significantly more capable than existing direct-connection systems and will enable the following services:
- Voice calls via satellite directly to mobile devices
- Data transmission with higher speed and efficiency
- Text messages without a mobile network
- Seamless integration with the first and second generation of the Leo network
The full Amazon Leo network is set to consist of thousands of satellites in low Earth orbit and, according to the company, will provide capacity for hundreds of millions of end devices worldwide. Amazon also plans to work with mobile network operators to extend cellular coverage to areas not reached by terrestrial networks.
The transaction is still subject to regulatory review. Approximately 58 percent of voting Globalstar shareholders have already approved the merger by written consent.
