Amazon has made a major move in the race for the internet via low Earth orbit satellite by agreeing to the purchase of Globalstar, one of the most important operators in the sector. The move is aimed directly at strengthening its Amazon Leo network and closing the gap with Starlink, the SpaceX service that currently sets the standard in this market.
The operation, valued at around 11.600 millionIt combines a strong technological commitment with a top-level strategic move: Amazon not only adds fleet, infrastructure and spectrum, but also inherits the key relationship that Globalstar maintains with Apple to support emergency services and satellite connectivity on the iPhone and Apple Watch.
A multi-billion dollar deal to boost Amazon Leo
According to a statement from both companies, Amazon has signed a final merger agreement to acquire Globalstar in a transaction close to $11.57-11.60 billion (about €10.700 billion at the exchange rate), a figure that places the purchase among the largest in the history of the e-commerce giant, behind Whole Foods but in the league of operations like that of MGM.
The agreement stipulates that the Globalstar shareholders They can choose between two options for each share they own: receive $90 in cash or exchange it for 0,3210 shares of Amazon common stock. However, the cash component is subject to a proration mechanism which limits the overall cash amount to a maximum of 40% of the total shares, automatically converting any excess into shares.
Furthermore, the final price may be adjusted downwards up to a maximum of 110 million If Globalstar fails to achieve certain operational milestones prior to closure, these objectives include progress in its satellite program, including the HIBLEO-4 replacement satellite, a key component for ensuring the constellation's continuity and capabilities.
Shareholders representing approximately 58% of the voting power They have already given their written approval to the transaction, paving the way for the acquisition to be completed. The timeline outlined by the companies places the closing in 2027, subject to the corresponding regulatory approvals and the fulfillment of a series of technical commitments.
What exactly does Amazon buy: satellites, spectrum, and experience
With this operation, Amazon gains control of the Globalstar's existing satellite operations, its on-the-ground infrastructure, its operational experience and, above all, a set of spectrum rights and mobile satellite service (MSS) licenses with authorizations on a global scale.
Globalstar, founded in the nineties as a joint venture between Qualcomm and LoralIt has been operating satellites in low Earth orbit for decades. Its business has traditionally focused on mobile satellite communications, connecting phones and devices in areas with poor coverage, with nearly 800.000 subscribers by the end of 2025 and a network used for critical services such as emergency messaging.
That background translates into a combination of operational satellite fleet, ground stations and technical expertise which Amazon can integrate relatively quickly into its Leo project. For analysts, the immediate access to usable spectrum for direct services to devices It is one of the most decisive assets of the agreement, as it accelerates steps that would otherwise require years of development, regulatory coordination and bidding processes.
From a financial point of view, Globalstar had been showing moderate but stable growth, with annual revenue of approximately $273 millionGrowth of nearly 9% and a slight operating profit. This economic foundation, along with the strong appreciation of its shares in the last year—in some periods almost quadrupling—has been driven precisely by expectations of a corporate transaction and by renewed investor interest in satellite communications.
Leo, Amazon's big satellite bet against Starlink
The purchase of Globalstar fits perfectly into Amazon Leo's strategy, the network of low Earth orbit satellites With this, Jeff Bezos' company aims to offer high-speed, low-latency broadband to customers worldwide, including in Europe and rural areas of Spain where terrestrial coverage remains limited.
Leo, heir to the ancient Project kuiperIt is still in a less mature phase than Starlink. While SpaceX's constellation surpasses 10.000 active satellites and more than 10 million customersAmazon currently has just over 200 satellites in orbit (with goals of reaching around 700 in the medium term) and plans to deploy around 3.200 units by 2029.
The company has also faced launch capacity restrictions and has asked the US Federal Communications Commission (FCC) for an extension of up to two years to meet the requirement of having approximately half of its constellation operational before July 2026. The integration of the Globalstar fleet helps precisely to gain time and strength on that front.
Far from being limited to a fixed connection, Amazon Leo aspires to become a global connectivity platform for homes, businesses, public administrations, and the aviation sector. The company has already signed agreements with airlines such as JetBlue and Delta to offer onboard internet on international routes starting in 2027 and 2028, a service that could foreseeably also benefit from Globalstar's additional capabilities.
Direct-to-device (D2D) connectivity: mobile phones connected without ground antennas
One of the main vectors of the operation is the development of direct-to-device (D2D) servicesThat is, the possibility that mobile phones and other equipment connect directly to satellites, without the need for specific antennas or traditional cell phone towers.
Amazon has indicated that the expanded network will allow it to offer voice, data and messaging services directly to mobile devices, breaking the limitations of conventional cellular networks and extending coverage to rural, maritime, or remote areas in Europe and the rest of the world. The deployment of the next-generation D2D system is planned for 2028, building on Globalstar's prior experience in this type of service.
The integration of the first and second generation Leo constellation systems with Globalstar satellites will result in a unified network It will combine fixed and mobile services with thousands of satellites in low Earth orbit designed to serve millions of users. On paper, the architecture promises better spectrum efficiency and higher speeds than current D2D systems on the market.
From Amazon, the senior vice president of Devices and Services, Panos PanayHe explained that the goal is to reach "billions of customers who live, travel and operate outside the reach of existing networks," with the promise of delivering "faster and more reliable service in more places" and keeping users connected with the people and content they consider essential.
Apple, a key player on the board: continuity and new satellite features
The equation doesn't make full sense without Apple. Globalstar is the operator that currently provides the infrastructure for functions such as Emergency SOS via satellite on iPhone 14 and later, as well as equivalent services on the Apple Watch Ultra 3, allowing users to send emergency messages or share their location when there is no mobile coverage.
In 2024, Apple invested approximately 1.500 million Apple invested in Globalstar and acquired a 20% stake in the company, securing access to 85% of its network capacity for satellite-based messaging and emergency services. This investment has given the Cupertino firm a significant voice in the operator's strategic decisions.
Amazon's acquisition was therefore negotiated in a delicate context, since Apple had to be satisfied with the continuity of services and with the future roadmap. In fact, the final structure of the agreement includes a specific collaboration between Amazon Leo and Apple to maintain and extend that connectivity on the brand's devices.
Amazon and Apple have announced that Leo will be in charge of power the satellite services of the iPhone and Apple WatchThis applies to both current and future models. The idea is that the combined Globalstar and Leo constellation will support functions such as emergency SOS, satellite messaging, roadside assistance, and location services, and that they will collaborate on new services that leverage the increased capacity of the expanded network.
Impact on Europe and opportunities for Spain
In the European context, Amazon's move fits into the growing competition for connectivity in rural and remote areaswhere fiber and 5G networks still have significant gaps. Spain, with its challenging terrain in certain areas and a notable dispersion of population centers, is one of the countries where satellite broadband can play a relevant role.
Expanding the Leo network with Globalstar's capacity opens the door to... users in isolated villagesAgricultural operations, energy facilities, and maritime routes should have a viable alternative to land-based connections. For businesses and government agencies, robust D2D services can be particularly beneficial in areas such as emergency response, civil protection, transportation, fishing, and rural tourism.
Furthermore, the integration of satellite services into consumer devices such as smartphones and smartwatches It lowers the barrier to entry: no specific equipment would be needed to benefit from basic safety connectivity, something that Apple's experience has already proven useful in rescues and risky situations in the mountains or on the road.
It remains to be seen how it will be structured Amazon Leo's commercial presence in EuropeWhat agreements will it reach with mobile network operators, and how will it coordinate with European Union regulatory frameworks regarding spectrum, security, and competition? In any case, strengthening the constellation and focusing on D2D increases the chances of the service gaining a stronger foothold in the region.
Fierce competition: Amazon, SpaceX, and other bids for Globalstar
Amazon's acquisition of Globalstar comes at a time when The satellite industry is experiencing an intense race for its dominance in global connectivity. Starlink has established itself as the benchmark, with estimated revenues of several billion dollars annually and a satellite deployment rate far exceeding that of its competitors.
Globalstar, despite having a much smaller constellation, has been in the spotlight for its technology to connect directly to devices and for its spectrum portfolio. According to previous reports, the company explored a possible sale with other potential buyers, including initial contacts with SpaceX, before finally opting for Amazon's proposal.
The interest of major players in these types of assets is not accidental: D2D services space It is perceived as one of the fastest growing segments in the medium term, with applications ranging from security and emergencies to logistics, monitoring of critical infrastructures or basic connectivity in countries with less developed fixed networks.
For Amazon, the deal also has broader financial and industrial implications. Firms like Citron Research have highlighted that the group is simultaneously strengthening its spectrum positioning, artificial intelligence, data centers, robotics and logisticsAnd that the market is not yet fully recognizing that combination in its stock valuation. Beyond these analyses, the acquisition of Globalstar fits with CEO Andy Jassy's long-term strategy, who sees Leo as one of the group's major drivers of further growth.
Overall, the purchase of Globalstar puts Amazon in a very different starting position in the satellite internet race: it already has a constellation up and running, adds a proven mobile satellite network, maintains its alliance with Apple on critical services, and is better positioned to offer direct connectivity to devices worldwide, including the European market, where the demand for reliable broadband in poorly covered areas remains a challenge.
