Amazon is planning to buy Globalstar in an $11.57 billion deal to expand its presence in satellite-based internet services. This development exists because companies attempt to reach SpaceX’s Starlink service, the market leader under Elon Musk’s control.
Amazon obtains rights to Globalstar’s worldwide satellite network through the agreement, which includes a satellite constellation of about 24 satellites. The agreement demonstrates increasing competition among companies that provide satellite-based internet services.
The news sent Globalstar shares up more than 9% in pre-market trading, on top of gains over the last few weeks. Shares of the company had climbed almost twice their value from a year ago, with a 12% gain achieved in 2026 before the deal. Shares of Amazon, on the other hand, increased slightly by 1%.
According to the terms of the deal, shareholders will get $90 in cash or 0.3210 Amazon shares per share. The transaction is expected to be completed in the coming year.
Amazon is currently developing its constellation of satellites and has set a target to launch about 3,200 satellites by 2029. Under the regulatory framework, nearly 50 percent of the devices must be operating properly by the set date of July 2026. As of now, Amazon has 200 satellites and aims to offer internet connectivity commercially this year.
Nevertheless, the scale of the problem remains significant. Starlink already has over 10,000 satellites in orbit and provides internet services to over 9 million users worldwide.
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Globalstar plays a key role in powering satellite features such as Emergency SOS on devices from Apple Inc., which has invested about $1.5 billion in the company. As part of parallel agreements, Amazon and Apple will continue supporting these services across iPhones and Apple Watches.
Globalstar is also working to expand its network to 54 satellites, with support in part from Apple, as demand for satellite connectivity grows across consumer, enterprise, and government segments.