Amazon strikes $11.57B Globalstar deal as rivalry with Starlink heats up

Amazon’s $11.6 billion bet

Amazon just agreed to buy a satellite company called Globalstar for $11.57 billion. This is a huge move to catch up with Elon Musk’s Starlink in the race for space-based internet. The deal adds 24 of Globalstar’s satellites to Amazon’s growing network.

Amazon is playing catch-up here. Starlink already has about 10,000 satellites in orbit, while Amazon has launched only around 200 so far. But with this purchase, Amazon gets a serious boost in technology and experience.

Why Globalstar matters

Globalstar is a Louisiana-based satellite operator with a 24-satellite low-Earth-orbit network and decades of experience in mobile satellite communications. Its direct-to-device capabilities and planned network expansion made it a valuable target for Amazon as satellite-to-phone connectivity becomes more important.

That means your phone can connect straight to a satellite without needing a cell tower. This is perfect for emergencies or remote areas where regular cell service doesn’t reach. 

Teaming up with Apple

Here’s where things get interesting. Apple already owns 20% of Globalstar after investing $1.5 billion back in 2024. So when Amazon announced this deal, Apple fans got nervous. Would their emergency features disappear?

Nope. Amazon and Apple signed a separate agreement to keep everything running smoothly. That means your iPhone’s Emergency SOS, Find My, and Roadside Assistance will still work fine. No interruptions at all for Apple users. 

Starlink’s huge head start

Starlink still has a major lead, with more than 10,000 satellites in orbit, while Amazon has launched more than 200 satellites for its own network.

Amazon plans to build a 3,236-satellite constellation, and its current FCC milestone still calls for 50% deployment by July 31, 2026, unless regulators approve the company’s requested extension. That’s less than three months away. The pressure is definitely on for Amazon to catch up fast. 

Fun fact: Starlink’s satellites are so dense in orbit that two of them pass within one kilometer of each other roughly every 22 seconds. 

What direct-to-device means

Ever been on a hiking trip with zero cell service? That’s where direct-to-device technology comes in. Your phone talks straight to a satellite instead of searching for a tower. No more dead zones or dropped calls in remote places.

Globalstar’s network is built specifically for this kind of low-data connection. Amazon says the deal will help it launch its own D2D service by 2028. Meanwhile, Starlink is already testing its service with T-Mobile and other carriers. 

The money behind the deal

How does this buyout actually work? Globalstar shareholders get a choice. They can take $90 in cash for each share they own. Or they can swap each share for about 0.3210 shares of Amazon common stock. Pretty flexible for investors.

That $90 price is a 31% premium over what Globalstar stock was worth before news of the deal leaked. Globalstar’s shares jumped 10% on the announcement. Amazon’s stock also rose about 3%. Wall Street seems to like this move a lot. 

Starlink’s massive user base

Numbers don’t lie. Starlink already serves more than 10 million customers around the world. That’s a lot of people getting high-speed internet from space, especially in rural areas where traditional broadband is hard to find.

Amazon hasn’t launched its service to the public yet. They’re aiming for later this year. But with Globalstar in their pocket, they hope to close that gap fast. Still, going from zero to 9 million users is a huge challenge. 

SpaceX IPO coming soon

Here’s some juicy timing. Right as Amazon announced this deal, SpaceX is moving forward with its own IPO plan. That means Elon Musk’s space company could soon be on the stock market for everyone to invest in.

Starlink alone makes up about 50% to 80% of SpaceX’s revenue. Analysts think SpaceX could be worth well over a trillion dollars when it goes public. No wonder Amazon wants to speed up its satellite game before that happens. 

Keeping iPhone users happy

Amazon has separately agreed with Apple to keep Globalstar-powered satellite features available on supported iPhone and Apple Watch models, including Emergency SOS, Messages, and Roadside Assistance, where those services are offered.

Apple invested $1.5 billion in Globalstar back in 2024. That money helped fund a new network that will grow from 24 satellites to 54. So Apple isn’t going anywhere. They’ll still have a say in how things work. 

The satellite race heats up

This deal is part of a bigger trend. Companies are scrambling to compete with SpaceX by buying up smaller satellite firms. One expert said he expects this consolidation to keep happening across the industry.

Why? SpaceX has insane scale and can launch rockets almost anytime they want. To fight that, rivals need more satellites and better tech. Amazon just paid $11.57 billion to speed up that process. The space race is definitely game on. 

What this means for you

Amazon says it plans a broader 2026 rollout for its satellite internet service, with direct-to-device phone connectivity targeted for 2028 through the Globalstar deal. Over time, that could give travelers, rural users, and people in remote areas more ways to stay connected when traditional networks fall short.

Then by 2028, they’ll add direct-to-phone service. That means fewer dropped calls and more ways to stay in touch when you’re off the beaten path. 

Billionaire space rivalry

Let’s be honest. This is also about two rich guys going head-to-head. Jeff Bezos (Amazon founder) and Elon Musk (SpaceX boss) have been rivals for years. Now their space projects are colliding in a big way.

Bezos also has his own rocket company called Blue Origin. And Amazon Leo (formerly Project Kuiper) is his satellite brainchild. Musk’s Starlink is the current king. This $11.57 billion deal is Bezos saying, I’m not giving up without a fight.

Want a peek at what’s happening inside Amazon beyond the space race? Take a look at how its own AI tools are shaking up operations.

When can you use it?

Patience, friends. The deal still needs a thumbs-up from the FCC and other regulators. That could take until 2027 to fully close. And Amazon’s fancy new direct-to-device service is scheduled for 2028.

But the good news is Amazon’s basic satellite internet should arrive later this year. So while the full phone-service experience is a couple of years away, the space-based internet race is officially getting interesting. Stay tuned for what comes next.

Curious how Amazon’s moves are landing back on Earth? Take a look at the reaction to its Super Bowl ad; it adds an interesting angle.

If you enjoyed this space race breakdown, give it a thumbs up and let us know in the comments, do you think Amazon can actually catch Starlink?

This slideshow was made with AI assistance and human editing.

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