Amazon Wins $11.5B Globalstar Deal

The US Federal Communications Commission (FCC) has approved Amazon Leo's $11.5 billion acquisition of Globalstar, a deal that will help Amazon expand its satellite-based communications network. This acquisition adds Globalstar's two dozen satellites and mobile-satellite spectrum to Amazon's existing network.

Amazon Leo has launched more than 300 satellites since April 2025 and aims to deploy about 3,200 satellites in Earth's low orbit by 2029. The company has committed to investing more than $10 billion in Leo and plans to roll out its commercial satellite services by the end of 2026.

Globalstar currently powers satellite-based safety features such as Emergency SOS and Find My for Apple's iPhone and Apple Watch users. Apple invested about $1.5 billion in Globalstar in 2024 to fund the expansion of its iPhone communication services and accounted for about 63% of Globalstar revenue last year. Amazon plans to acquire Apple's 20% stake in Globalstar and has signed an agreement with Apple to continue providing these services.

## Why it matters The acquisition is a significant move for Amazon as it competes with Elon Musk's SpaceX Starlink unit in the satellite-based communications market. The deal will boost Amazon Leo's entry into the direct-to-device market, allowing the satellite operator to offer fixed and mobile services. The FCC's approval of the deal is also seen as a step towards increasing competition and helping communities stay connected.

The FCC will vote Thursday to advance a new auction of wireless spectrum to boost 'direct-to-device' services, which will further enhance the satellite-based connectivity market. Tech companies are pouring billions of dollars into capturing this lucrative market, and Amazon's acquisition of Globalstar is a strategic move to stay ahead in the game.