Amazon Finalizes $11.57 Billion Acquisition of Satellite Firm Globalstar
In a landmark move, e-commerce and technology giant Amazon has announced the acquisition of satellite communications company Globalstar for a staggering $11.57 billion. This strategic purchase is a critical component of Amazon's ambitious plan to expand its Amazon Leo satellite internet service, which aims to provide direct connectivity to consumer devices globally.
Three-Way Negotiation Resolves Apple's Stake Hurdle
The acquisition follows weeks of intensive negotiations involving Amazon, Globalstar, and Apple. A significant potential obstacle was Apple's existing 20% stake in Globalstar, acquired through a $1.5 billion deal in 2024 that granted the iPhone maker access to 85% of Globalstar's satellite capabilities. The three-way talks have now successfully concluded, clearing the path for Amazon's takeover.
In an official blog post, Amazon confirmed it has "entered into a definitive merger agreement" with Globalstar. The company stated that this acquisition will enable Amazon Leo to integrate direct-to-device (D2D) services into its low-earth orbit satellite network, thereby extending cellular coverage to customers in areas beyond terrestrial network reach.
New Amazon-Apple Partnership for Satellite Services
Concurrently, Amazon and Apple have announced a separate agreement. Under this new partnership, Amazon Leo will power satellite services for Apple's iPhone and Apple Watch lineups. This includes continuing support for existing features such as Emergency SOS via satellite, Messages via satellite, Find My, and Roadside Assistance via satellite.
"With the new Amazon-Apple agreement, Amazon will continue to support iPhone and Apple Watch models currently using Globalstar's existing and planned upcoming low Earth orbit satellite constellations, being manufactured by MDA Space, and collaborate with Apple on future satellite services using Amazon Leo's expanded satellite network," Amazon elaborated in its statement.
Apple's Transition from Globalstar to Amazon Leo
Apple has been collaborating with Globalstar for several years, notably launching satellite messaging with the iPhone 14 in 2022. Initially focused on emergency services in areas without cellular coverage, the service was later enhanced to include messaging via contacts and roadside assistance features.
With Amazon's purchase of Globalstar, Apple is now compelled to transition its satellite service provisioning to Amazon Leo. Greg Joswiak, Senior Vice President of Worldwide Product Marketing at Apple, commented on the development, stating, "Apple and Amazon have a long and proven track record of working together through Amazon's core infrastructure services, and we look forward to building on that collaboration with Amazon Leo. This ensures our users will continue to have access to the vital satellite features they have come to rely on, so they can stay safe and connected while off the grid."
Implications for the Satellite Communications Industry
This acquisition and partnership are poised to significantly reshape the satellite communications landscape. The deal promises to enhance satellite connectivity for consumer devices, offering alternative internet access methods beyond traditional cellular services. It represents a major consolidation in the industry, with Amazon leveraging Globalstar's assets to accelerate its Amazon Leo service rollout and solidify its position in the competitive satellite internet market.
The resolution of the complex negotiations underscores the strategic importance all parties place on satellite-based connectivity, signaling a future where direct-to-device satellite services become increasingly mainstream for consumer electronics.
