Amazon Acquires Globalstar for $11.6 Billion to Expand Satellite Connectivity
Amazon has agreed to acquire satellite communications provider Globalstar in a landmark $11.6 billion deal, aiming to bolster its Project Kuiper satellite network and compete with SpaceX’s Starlink. The acquisition grants Amazon critical spectrum assets and infrastructure for direct-to-device connectivity, enabling standard electronics to communicate via satellites without specialized hardware. Additionally, Amazon secured a strategic partnership with Apple to provide satellite services for iPhones, ensuring continuity for features like Emergency SOS. This move significantly expands Amazon’s footprint in the telecommunications and space sectors, pending regulatory approval expected by 2027.
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Amazon Acquires Globalstar for $11.57 Billion to Boost D2D Satellite Services
Amazon has announced the acquisition of satellite communications firm Globalstar in a deal valued at approximately $11.57 billion. This strategic move aims to strengthen Amazon's Project Kuiper low-earth orbit satellite internet business, positioning it to compete more effectively with Elon Musk’s Starlink. By acquiring Globalstar, Amazon gains control over its existing infrastructure, including roughly 24 satellites, and crucially, access to global spectrum licenses. These assets are pivotal for launching Amazon’s direct-to-device (D2D) satellite services, which are scheduled to begin in 2028. The transaction also impacts Apple, which holds a 20 percent stake in Globalstar. Both tech giants have confirmed that existing services, such as iPhone Emergency SOS features, will continue uninterrupted under new agreements. Industry analysts note that this acquisition provides financial stability to Globalstar while allowing Amazon to accelerate its entry into the growing D2D market, where investments are projected to reach $6-$8 billion by 2026. The deal signifies a major consolidation in the satellite connectivity sector, blending Amazon’s technological innovation with Globalstar’s established orbital assets.
The Indian ExpressApple Selects Amazon Satellites for iPhone Connectivity After Rejecting Starlink
Amazon has announced a strategic partnership with Apple to provide satellite connectivity for iPhones and Apple Watches, marking a significant shift in the tech giant's satellite infrastructure strategy. This agreement comes years after Apple reportedly rejected an offer from SpaceX's Starlink. As part of this move, Amazon signed a merger agreement to acquire satellite operator Globalstar for an estimated $11.6 billion. This acquisition aims to bolster Amazon's Leo network (formerly Kuiper Systems) and establish its presence in the Direct-to-Device market. The deal positions Amazon as the primary satellite service provider for Apple devices, continuing support for existing features like Emergency SOS and roadside assistance on iPhone 14 and later models. While Globalstar previously partnered with Apple, this new collaboration leverages Amazon's expanding satellite constellation, which plans to exceed 3,000 satellites. The merger is expected to close in 2027, pending regulatory approval. This development intensifies competition with SpaceX, which currently dominates the sector with over 10,000 satellites. Apple executives highlighted the continued importance of off-grid connectivity for user safety, while Amazon aims to launch mobile services by 2028.
arstechnicaAmazon Acquires Satellite Provider Globalstar for $11.57 Billion
Amazon has announced a definitive agreement to acquire satellite communications provider Globalstar for $11.57 billion, a strategic move aimed at accelerating its competition with Elon Musk's Starlink in the low-Earth orbit internet market. This acquisition significantly bolsters Amazon's Project Kuiper (referred to as Amazon Leo in the text), which aims to deploy approximately 3,200 satellites by 2029. Although Globalstar currently operates only 48 active satellites in higher orbits, the deal provides Amazon with critical access to valuable frequency bands that allow direct device-to-satellite communication without external receivers. Furthermore, Globalstar serves as the infrastructure behind Apple's emergency SOS feature on iPhones, a service expected to continue post-acquisition. Despite adding Globalstar's fleet, Amazon still trails Starlink's massive constellation of over 10,000 satellites. The takeover highlights the intensifying race among tech giants to dominate global satellite internet connectivity, leveraging existing spectrum rights and established ground station networks to bridge the gap with market leader SpaceX.
spiegelAmazon Agrees to $11.6 Billion Takeover of Satellite Group Globalstar
Amazon has officially agreed to acquire satellite communications company Globalstar in a landmark deal valued at $11.6 billion. This strategic acquisition marks a significant expansion of Amazon's technological infrastructure, particularly aiming to bolster its connectivity capabilities and integrate satellite services into its broader ecosystem. The move is widely interpreted as a direct response to the growing competition in the low-Earth orbit satellite market, where rivals like SpaceX have made substantial strides. By securing Globalstar's spectrum assets and satellite network, Amazon intends to enhance reliability for its existing cloud computing services, AWS, and potentially support future consumer devices requiring global coverage. The transaction underscores the tech giant's commitment to dominating the next generation of internet connectivity. Financial analysts suggest this merger will reshape the telecommunications landscape, blending traditional satellite operations with big tech innovation. Regulatory approvals are expected to be a key hurdle in the coming months, given the strategic nature of satellite spectrum. The deal highlights the increasing convergence between terrestrial internet services and space-based infrastructure, positioning Amazon at the forefront of the emerging space economy.
ftAmazon to Acquire Globalstar for Satellite Connectivity Expansion
Amazon has officially agreed to acquire Globalstar, a significant strategic move designed to bolster its emerging Amazon Leo satellite network. This acquisition is primarily aimed at enabling direct-to-device connections, allowing standard consumer electronics to communicate directly with satellites without the need for specialized hardware. By integrating Globalstar's existing infrastructure and spectrum assets, Amazon seeks to enhance its competitive position in the rapidly growing satellite communications market. This development marks a major expansion of Amazon's technological footprint beyond traditional e-commerce and cloud computing, venturing deeper into telecommunications and space-based connectivity solutions. The deal underscores the tech giant's ambition to provide seamless global coverage and reliable connectivity options for users worldwide. As competition intensifies among major technology firms to dominate the satellite internet sector, this acquisition positions Amazon to offer more robust and accessible services. The integration of Globalstar into Amazon's ecosystem is expected to accelerate the deployment of next-generation connectivity features, potentially transforming how devices maintain contact in remote or underserved areas. This business maneuver highlights the increasing convergence of terrestrial and space-based networks in modern telecommunications infrastructure.
WSJ.com: US Business