Amazon strikes multibillion-dollar deal for Globalstar in Starlink challenge

Amazon has agreed to acquire Globalstar in an $11.57 billion deal, strengthening its growing satellite business as it steps up efforts to compete with Elon Musk’s Starlink.

The announcement sent Globalstar shares up more than 9 percent in premarket trading. The stock had already gained more than 6 percent over the past two weeks following reports that the two companies were in talks. Amazon shares also rose about 1 percent on Tuesday.

The acquisition gives Amazon access to Globalstar’s network of roughly two dozen satellites, adding momentum to its ambitions in the satellite internet market. Starlink, currently the dominant player in the sector, has around 10,000 satellites in orbit.

Under the agreement, Globalstar shareholders will have the option to receive either $90 in cash or 0.3210 shares of Amazon common stock for each share they own.

Amazon is pushing ahead with plans to deploy about 3,200 low-Earth orbit satellites by 2029. To meet regulatory requirements, nearly half of that network must be in place by July 2026. The company currently operates more than 200 satellites and is preparing to launch its satellite internet services later this year.

Starlink, by comparison, already serves more than nine million users worldwide, giving it a significant lead in the race for satellite-based internet coverage.

Based in Covington, Louisiana, Globalstar is best known for powering Apple’s Emergency SOS feature. The company operates around two dozen low-Earth orbit satellites and said late last year that its new Apple-backed network would expand to 54 satellites, including a small number of backup units.

Globalstar provides voice, data, and asset-tracking services across enterprise, government, and consumer markets.

In a related development, Amazon and Apple have signed an agreement to continue supporting satellite-based safety services such as Emergency SOS and Find My for iPhone and Apple Watch users. Apple has invested about $1.5 billion in Globalstar.

The deal is expected to close next year, subject to regulatory approvals and the completion of specific satellite deployment milestones by Globalstar.