Amazon Acquires Globalstar for $11.6 Billion, Reaches Satellite Service Cooperation Agreement with Apple
2026-04-15 10:17
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en.Wedoany.com Reported - Amazon and Globalstar announced on April 14, 2026 local time that they have reached a definitive merger agreement, under which Amazon will acquire Globalstar for approximately $11.6 billion. According to the agreement, Globalstar shareholders can choose to receive $90 in cash per share or 0.3210 shares of Amazon common stock per share. The transaction is expected to be completed in 2027. This acquisition will add direct-to-device (D2D) service capabilities to Amazon's Leo satellite network, extending cellular network coverage to customers in areas unreachable by terrestrial networks.

In a statement, Panos Panay, Senior Vice President of Amazon Devices & Services, said that by combining Globalstar's proven technical expertise and solid foundation with Amazon's customer-centric innovation capabilities, customers will be able to access faster and more reliable services in more locations, thereby staying connected with important people and things. Globalstar CEO Paul Jacobs stated that low Earth orbit satellite constellations are the most effective path to achieving true anytime, anywhere connectivity for users and devices. Combining with Amazon Leo will advance digital connectivity innovation, benefiting customers and moving towards a smarter, continuously connected world.

On the same day, Amazon and Apple announced an agreement under which Amazon Leo will provide satellite services for supported iPhone and Apple Watch models, including sending emergency SOS signals via satellite, communicating with emergency services, sending messages to family and friends, and requesting roadside assistance. Amazon plans to deploy its own next-generation D2D satellite system starting in 2028, offering more advanced voice, data, and messaging services with significantly higher spectrum efficiency than traditional direct-to-cellular systems. The company is also collaborating with mobile network operators and partners with the goal of providing reliable high-speed connectivity to customers regardless of their location.

Globalstar is a leading mobile satellite services operator with over 30 years of experience in non-geostationary orbit satellites and D2D technology. Amazon will acquire Globalstar's existing satellite operations business, infrastructure, and related assets, including globally authorized mobile satellite service spectrum licenses. Globalstar currently operates over 24 low Earth orbit satellites and has signed agreements to add more than 50 additional satellites. Its existing and next-generation satellite fleet will operate in conjunction with Amazon's Leo broadband system and Amazon's planned D2D satellite system.

Amazon Leo plans to deploy approximately 3,200 low Earth orbit satellites by 2029, with about 1,600 required to be deployed by the FCC regulatory deadline in July 2026. As of April 2026, Amazon has launched over 240 satellites into orbit and recently applied to the FCC for an extension of the deployment deadline. Globalstar received a $1.5 billion investment from Apple in 2024, with Apple holding a 20% stake, to strengthen its satellite constellation and ground infrastructure. SpaceX's Starlink currently operates over 10,000 satellites in orbit, serving more than 9 million users, dominating the low Earth orbit satellite internet market.

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