Amazon Amplifies Orbit Ambitions with $11.57B Globalstar Grab

After Google and Apple, Amazon has now made a major investment to compete with Starlink in the battle for satellite connectivity. Amazon has announced that it is acquiring satellite company Globalstar for $11.57 billion. Through this move, Amazon aims to strengthen its position in competition with Starlink, led by Elon Musk.

Starlink’s Vast Network
Starlink has already established a network of 10,000 satellites and has gained more than 9 million subscribers. Reaching this massive scale will be a significant challenge for Amazon. However, the acquisition of Globalstar is expected to narrow the gap to some extent.

Globalstar’s two dozen satellites will be integrated into Amazon’s network of more than 200 satellites. In addition, Amazon has set a target to deploy a total of 3,200 satellites into orbit by 2029.

Technology and Services
Globalstar’s satellite network is designed to provide reliable low-data connectivity directly to mobile devices. This means that, in the future, phones will be able to connect directly to satellites without the need for towers. Amazon plans to use this technology to launch services starting in 2028. Starlink, meanwhile, is already working on similar services through partnerships with companies such as T-Mobile.

Ties with Apple Remain Intact
Globalstar currently powers Apple’s Emergency SOS and Find My features. Even after the acquisition by Amazon, this service agreement with Apple will remain in place. Previously, in 2024, Apple invested $1.5 billion in Globalstar. However, it remains unclear how Apple’s stake will be affected following the acquisition.

Market and Regulatory Oversight
Following the acquisition announcement, Globalstar’s shares rose by 10 percent. Amazon stated that completion of the deal will require regulatory approval and the achievement of specific launch targets. The United States telecommunications regulator has indicated a “positive outlook” regarding the acquisition.

Through this acquisition, Amazon’s position in the satellite internet market is expected to strengthen, although challenging Starlink’s dominance will not be easy.

DBTech/BMT/OR