Amazon to Acquire Globalstar in $11 Billion Push to Challenge Starlink

Amazon (NASDAQ: AMZN) is set to acquire satellite operator Globalstar (NASDAQ: GSAT) in a transaction valuing the company at over $11 billion. The acquisition is a strategic effort to accelerate the deployment of Amazon's satellite-delivered internet service, Project Leo, which has faced delays due to rocket shortages. The move is designed to challenge the dominance of Elon Musk's SpaceX and its Starlink network, which currently boasts over 10,000 satellites in orbit and 9 million customers. In comparison, Amazon has launched approximately 240 Leo satellites. By integrating Globalstar, Amazon intends to rapidly scale its infrastructure and introduce direct-to-device (D2D) cellular services, with a next-generation high-speed network planned for 2028. Under the terms of the agreement, Globalstar shareholders may receive $90 in cash or 0.3210 shares of Amazon stock for each share they own, subject to certain caps. The transaction is projected to close in 2027, contingent upon regulatory approvals and specific satellite deployment milestones. The deal also incorporates a strategic arrangement with Apple (NASDAQ: AAPL), which holds a 20% stake in Globalstar. As part of the acquisition, Amazon has agreed to supply satellite services for Apple's iPhone and Apple Watch devices, building upon an existing collaborative relationship between the two technology giants. This acquisition signals a significant escalation in the race for global satellite connectivity, providing Amazon with the immediate infrastructure needed to compete in the high-speed satellite internet market.