Amazon has officially announced its acquisition of satellite operator Globalstar in a deal valued at $11.57 billion, marking a major strategic move to bolster its Project Kuiper satellite internet service and directly challenge SpaceX's Starlink dominance. The definitive merger agreement was announced on Tuesday, April 15, 2026.
Under the terms, Globalstar shareholders can choose to receive either $90 in cash or 0.3210 shares of Amazon common stock for each share they own. The news propelled Globalstar's stock up approximately 12% in premarket trading, while Amazon's shares rose about 1%. This follows earlier reports from Bloomberg and the Financial Times that advanced talks were underway for a deal initially estimated at around $9 billion.
A key driver of the acquisition is to accelerate Amazon's entry into the direct-to-device connectivity market. The combined entity, branded Amazon Leo, aims to extend cellular coverage beyond traditional networks. Amazon executive Panos Panay stated the initiative targets "billions of customers... in places beyond the reach of existing networks." He emphasized that integrating Globalstar's expertise would lead to "faster, more reliable service in more places."
The deal's complexity was heightened by Apple's existing 20% stake in Globalstar, stemming from a $1.5 billion investment in 2024 that secured Apple access to 85% of Globalstar's network capacity for services like Emergency SOS on iPhone. As part of the acquisition announcement, Amazon and Globalstar revealed a collaboration with Apple, where Amazon Leo will power satellite services for Apple devices, including the iPhone and Apple Watch.
Founded in 1991, Globalstar has seen its shares surge over 270% in the past year on takeover speculation. The company reported full-year 2025 revenue of $273 million, a 9% increase from 2024, with income from operations of $7.4 million. Despite this, Amazon's satellite ambitions face significant challenges. Project Kuiper currently has just over 240 satellites in orbit, a stark contrast to SpaceX's fleet of more than 10,000 Starlink satellites. Amazon aims to expand to about 700 satellites by mid-year but has faced launch capacity shortages, recently seeking a two-year FCC extension for deploying 1,600 satellites.
Amazon has also secured commercial in-flight internet partnerships with airlines like JetBlue and Delta, with services slated to begin in 2027 and 2028, respectively.
