Amazon to spend $11.57bn on Globalstar to expand satellite services

Amazon will buy Globalstar for about $11.57bn to add satellites to its Leo network and plans to deploy a next-generation system by 2028.

Amazon is acquiring Globalstar for about $11.57bn to expand its low‑Earth orbit satellite efforts under the Leo project. The company said the purchase will help it put thousands of additional satellites into orbit and support a next‑generation satellite system planned for 2028. The move places Amazon in closer competition with other satellite internet providers. The article reports that Amazon will take over Globalstar's facilities and operations in multiple countries as part of the deal. Key details: - Amazon agreed to buy Globalstar for about $11.57bn and will take over Globalstar's infrastructure in Louisiana, Georgia, Dublin (Ireland), Rio de Janeiro (Brazil), Toulouse (France), and two locations in California. - The acquisition is intended to add satellites to Amazon's Leo network and support a goal of deploying a next‑generation system in 2028; achieving thousands of active satellites will require a significant ramp‑up in production, the article says. - The article says Leo currently has around 200 satellites in orbit and Globalstar has about 50 active satellites, while the article says Starlink has more than 10,000 active satellites and over 10 million paying customers. - Amazon chief executive Andy Jassy said Leo has commitments from Delta Airlines, JetBlue, AT&T, Vodafone, DIRECTV Latin America, Australia's National Broadband Network, and NASA to use Leo satellites once more capacity is available. - The article notes Apple took a 20% stake in Globalstar in 2024, and Amazon said it had reached an agreement with Apple to continue offering the iPhone and Apple Watch emergency "SOS" functionality via Globalstar's satellites. - Globalstar began as a satellite communications company in 1991 and is publicly listed, with a market valuation that the article reports has hovered around $10 billion this year. Summary: The acquisition aims to accelerate Amazon's plan to expand the Leo satellite network and to integrate Globalstar's existing operations and services. The article highlights that Amazon will need to scale satellite production substantially to meet its multi‑thousand‑satellite goal by 2028 and that the deal draws Amazon into closer competition with established satellite providers. Undetermined at this time.