Amazon Acquires Globalstar to Accelerate Satellite Internet Competition

Key Details Amazon has agreed to acquire satellite operator Globalstar in a strategic move to strengthen its low-earth-orbit satellite network, Amazon Leo. The deal offers Globalstar shareholders $90 per share in cash or 0.32 Amazon shares capped at $90, with closing expected in 2027. Why It Matters The acquisition directly challenges SpaceX's Starlink, which commands over 10 million active customers and 10,000 satellites in orbit. Amazon has fallen behind on FCC deployment deadlines, requesting a waiver to extend its July deadline for launching 1,600 satellites. What Globalstar Brings Globalstar operates an existing satellite network focused on connecting devices in low-coverage areas and powers Apple's iPhone emergency services. While smaller than Starlink's constellation, the acquisition accelerates Amazon's goal of deploying more than 7,700 satellites for broadband coverage. Market Context Satellite broadband is experiencing rapid growth, particularly in remote and underserved regions. Starlink is projected to generate over $9 billion in revenue this year, demonstrating the lucrative potential of satellite internet services for both trucking connectivity and broader market applications.