Amazon is making a massive $11.57 billion move to acquire satellite communications company Globalstar, significantly escalating its competition with Elon Musk's Starlink in the race to provide global internet and mobile services from space.
The acquisition, announced Tuesday, will accelerate Amazon's Project Kuiper (also referred to as Leo) initiative, which aims to deploy thousands of satellites in low-earth orbit. Amazon stated the deal aligns with its "long-term vision for space-based connectivity" and plans to launch a "next generation" satellite system by 2028.
"This acquisition represents a strategic leap forward in our mission to deliver reliable, high-speed connectivity to unserved and underserved communities worldwide," an Amazon spokesperson said in the announcement.
Currently, Amazon's Project Kuiper has only about 200 satellites in orbit, while Starlink—launched by Musk in 2019—already operates more than 10,000 active satellites serving over 10 million paying customers. Starlink, a subsidiary of SpaceX, generates substantial revenue estimated between $500 million and $1.2 billion from user fees alone.
Globalstar brings approximately 50 active satellites to Amazon's portfolio, along with critical infrastructure in Louisiana, Georgia, Ireland, Brazil, France, and California. Founded in 1991, Globalstar has a notable partnership with Apple, providing emergency "SOS" satellite connectivity for iPhone and Apple Watch users since 2022. Apple acquired a 20% stake in Globalstar in 2024, and Amazon confirmed it has reached an agreement with Apple to continue this emergency service.
Amazon CEO Andy Jassy highlighted in a recent shareholder letter that Project Kuiper has already secured commitments from major organizations including Delta Airlines, JetBlue, AT&T, Vodafone, DIRECTV Latin America, Australia's National Broadband Network, and NASA to utilize its satellite network once fully operational.
The satellite internet competition continues to intensify with another recent entrant: Blue Origin, the rocket company founded by Amazon's former CEO Jeff Bezos. Blue Origin's TerraWave project aims to launch at least 5,400 satellites by late 2027, targeting internet connectivity for large enterprises.
Amazon's offer to Globalstar shareholders is $90 per share in cash or equivalent Amazon stock value. Globalstar's market valuation has remained around $10 billion this year.