Amazon Pays $11.6B for Globalstar and an Apple Partnership to Take On Starlink
The deal hands Amazon Leo a functioning satellite fleet, Apple as a locked-in customer, and the globally licensed Band 53 spectrum that SpaceX reportedly wanted. AMZN rose 5%, GSAT jumped 10%.
Deal Overview
Amazon (NASDAQ: AMZN) announced on April 14 a definitive agreement to acquire Globalstar (NYSE: GSAT) for approximately $11.57 billion, or $90 per share. Shareholders can elect cash or 0.3210 Amazon shares per Globalstar share, with cash elections capped at 40% of total shares. The deal is intended as a tax-free reorganization and is expected to close in 2027. No separate shareholder vote is required: holders of a majority of voting power have already approved via written consent.
The acquisition gives Amazon’s satellite division, recently rebranded from Project Kuiper to Amazon Leo, Globalstar’s roughly two dozen operational low-earth-orbit satellites, ground station network, and globally harmonized spectrum licenses across L-band, S-band, and Band 53/n53. Critically, Amazon also announced a parallel agreement with Apple: Amazon Leo will continue powering satellite connectivity for current and future iPhones and Apple Watches, including emergency SOS, roadside assistance, and messaging features.
Amazon shares rose 5% on the news. Globalstar jumped 10%.
Why It Matters
Amazon bought time and spectrum. Project Kuiper has been in development since 2019 and has roughly 200 satellites in orbit against a target of 3,200 by 2029. SpaceX’s Starlink operates approximately 10,000 satellites and serves over 9 million subscribers. Amazon was losing the satellite race by every measurable metric. Globalstar gives Amazon something it cannot build: operational satellite infrastructure today and, more importantly, Band 53 spectrum that is licensed globally and optimized for direct-to-device connectivity. Industry sources suggest Amazon paid the premium specifically because SpaceX was also interested in Globalstar’s spectrum. Securing Band 53 before a competitor could was the strategic imperative.
The Apple angle is the real prize. Apple invested $1.5 billion in Globalstar in 2024, taking a 20% stake and securing 85% of network capacity. The new Amazon-Apple agreement means every iPhone and Apple Watch with satellite features becomes an Amazon Leo customer. Apple gets a well-capitalized infrastructure partner that can scale the network far beyond what Globalstar could alone. Amazon gets a built-in customer relationship with the world’s most valuable consumer hardware company. SpaceX has its own direct-to-device partnerships (notably with T-Mobile), but none with Apple’s install base.
This fits Amazon’s $200B capex plan. Amazon has already signaled $200 billion in 2026 capital expenditure, primarily for AI infrastructure. Adding satellite connectivity extends the same infrastructure thesis: Amazon wants to own the physical layer that its cloud, logistics, and consumer businesses run on. AWS’s $15 billion AI revenue run rate, the $21B CoreWeave/Meta deal flowing through Amazon’s cloud, and now a global satellite network all point to a company that is vertically integrating at planetary scale.
- Starlink's head start: 10,000 satellites vs. ~200. 9 million subscribers vs. zero consumer broadband customers. Globalstar's fleet is tiny. Amazon is buying a foundation, not a competitive product.
- Execution timeline: Amazon must deploy half of its 3,200-satellite constellation by mid-2026 to meet FCC license requirements. The Globalstar acquisition does not solve that manufacturing challenge.
- Regulatory review: A company with dominant positions in cloud, e-commerce, and logistics adding satellite spectrum will draw scrutiny. The 2027 close timeline bakes in a long approval process.
- Spectrum is the moat: Band 53 is globally licensed, interference-free, and optimized for direct-to-device. It cannot be replicated. At $11.6B, Amazon bought an asset that appreciates as satellite-to-phone becomes standard.
- Apple as anchor customer: Every new iPhone with satellite features is an Amazon Leo user. No customer acquisition cost required for the world's largest consumer hardware install base.