Amazon to Buy Globalstar for $11.6 Billion, Signs Deal for Apple to Use Its Satellites

Amazon agreed to acquire satellite operator Globalstar for $11.57 billion, the company announced Monday, in a deal that will expand its low Earth orbit satellite constellation and bring Apple on board as a customer for iPhone emergency services.

The all-cash deal values Globalstar at $90 per share. Shareholders can alternatively elect to receive 0.3210 Amazon shares per Globalstar share, though cash elections are capped at 40% of total shares. Holders of approximately 58% of Globalstar's voting shares have already approved the transaction.

The acquisition gives Amazon control of Globalstar's satellite operations, mobile satellite services spectrum licenses with global authorizations, and direct-to-device technology -- assets that will be folded into Amazon Leo, the company's 3,000-satellite constellation formerly known as Project Kuiper.

Apple Signs On

In a separate agreement announced alongside the acquisition, Apple will use Amazon Leo to power satellite connectivity for iPhone 14 and later models and Apple Watch Ultra 3. The services include Emergency SOS via satellite, emergency messaging, location sharing, and roadside assistance.

Globalstar currently provides the satellite backbone for Apple's existing Emergency SOS feature. The new deal transitions that service to Amazon's expanding network.

"We look forward to building on that collaboration with Amazon Leo," said Greg Joswiak, Apple's senior vice president of worldwide product marketing, "so they can stay safe and connected while off the grid."

Competing With Starlink

The acquisition positions Amazon as a direct competitor to SpaceX's Starlink, which dominates the low Earth orbit satellite internet market. Amazon Leo's initial constellation of more than 3,000 satellites is designed, built, and operated in-house, with deployment already underway through launches from Arianespace, Blue Origin, SpaceX, and United Launch Alliance.

Beginning in 2028, Amazon plans to deploy a next-generation direct-to-device satellite system capable of providing voice, data, and messaging directly to mobile phones -- a capability that would extend well beyond the current emergency-only services.

"By combining Globalstar's proven expertise and strong foundation with Amazon's customer-obsession and innovation, customers can expect faster, more reliable service in more places," said Panos Panay, Amazon's senior vice president of devices and services.

Deal Structure

The transaction includes a $110 million downward adjustment if Globalstar fails to meet specific operational milestones before closing. Globalstar must also achieve progress on its HIBLEO-4 replacement satellite program.

The deal is expected to close in 2027, pending FCC approval and international regulatory clearances. Both companies will file regulatory documents, including Globalstar's Schedule 14C and Amazon's Form S-4 registration statement.

Paul Jacobs, Globalstar's CEO, called the deal an advance toward "a more intelligent, continuously connected world."

What Amazon Gets