Amazon’s agreement to acquire Globalstar for $11.57 billion marks a decisive move in the race to dominate satellite-based internet connectivity — and it puts the world’s most entrenched player, Elon Musk’s Starlink, squarely in its crosshairs.
The announcement, made on April 14, 2026, carries implications that extend well beyond a single corporate transaction. It reshapes the landscape for consumers, enterprises, wireless carriers, and device manufacturers at a moment when satellite internet is transitioning from a niche service to critical infrastructure.
What Amazon Is Actually Buying
On the surface, Amazon is acquiring Globalstar’s network of over 200 satellites, but the strategic value runs deeper than satellite count. The $90-per-share deal will net Amazon all of Globalstar’s satellite operations, infrastructure, and mobile satellite services spectrum licenses, enabling the larger company to flesh out its young satellite business, Amazon Leo, with direct-to-device services ahead of its launch later this year.
Central to that is Globalstar’s hold on Band 53 — a block of midband spectrum from 2483.5 to 2495 MHz that Globalstar says is licensed exclusively to it and is “optimized for high-performance, low-latency, interference-free connectivity.” For Amazon, gaining exclusive access to that spectrum is arguably more valuable than the satellites themselves. It opens a path to direct-to-device connectivity, meaning Amazon Leo could eventually reach smartphones and wearables without requiring additional hardware.
Amazon also agreed to a deal with Apple to continue providing satellite connectivity services for the iPhone and Apple Watch. Globalstar currently powers Apple’s Emergency SOS feature on iPhone 14 and later models, as well as the Apple Watch Ultra 3, allowing users to reach emergency services and share their location outside of cellular coverage. That relationship will carry forward under Amazon ownership.
Amazon Leo’s Position Before the Deal
To understand the weight of this acquisition, it helps to understand where Amazon Leo stood before it. Amazon Leo has launched two prototype satellites and 241 production satellites to date as of April 2026. Its FCC license requires half of a planned 3,236-satellite constellation — roughly 1,618 satellites — to be operational by July 30, 2026, a deadline Amazon is reportedly facing delays in meeting, with only 241 satellites currently operational. In January, Amazon requested an extension from the FCC concerning a July 2026 deadline.
Despite those challenges, CEO Andy Jassy has signaled commercial launch for mid-2026. Delta Airlines is the latest enterprise customer to sign on, committing to bring Leo service to 500 planes by 2028. Other commercial customers include JetBlue, AT&T, Vodafone and NASA. The Leo Ultra terminal, Amazon’s enterprise flagship, is rated for download speeds up to 1 Gbps — a figure Amazon says significantly exceeds what competing satellite services currently deliver.
The Globalstar acquisition accelerates that buildout. By absorbing Globalstar’s existing satellite infrastructure, spectrum, and operational expertise, Amazon gains immediate capability in direct-to-device services without having to build it from scratch. The complete Amazon Leo network will include thousands of advanced satellites in low Earth orbit and have enough capacity to support hundreds of millions of customer endpoints around the world, according to Amazon’s official statements.
The Starlink Gap
The gap Amazon is working to close is real. Starlink generated $10.6 billion in revenue in 2025 at a 54 percent EBITDA margin and serves more than 10 million paying subscribers across more than 100 countries, operating a constellation of 7,600 to 8,000-plus satellites.
Adding Globalstar’s two dozen operational satellites to Amazon Leo’s current constellation of 241 does not close that gap overnight. What it does provide is spectrum access, brand recognition through the Apple partnership, and a direct-to-device roadmap that Starlink is also pursuing through its Starlink Mobile service. The competition for that segment — connecting devices directly through satellite without cellular towers — is where the next phase of this market is likely to be decided.
SpaceX has filed for what could be a large IPO, potentially as early as June 2026, which would cement Starlink’s position as a capital-markets-validated infrastructure business before Amazon Leo has completed its initial rollout. That timing adds urgency to Amazon’s moves.
Regulatory Path and Timeline
The deal is expected to close in 2027, subject to regulatory approvals. FCC Chairman Brendan Carr told CNBC the agency will review the transaction. Under the terms of the deal, Globalstar shareholders can elect to receive either $90 in cash or 0.3210 shares of Amazon common stock for each share of Globalstar they own.
The acquisition represents a significant capital commitment on top of Amazon’s existing Leo infrastructure spending, which already involves 92 rocket launches from United Launch Alliance, ArianeGroup, and Blue Origin for a total cost exceeding $10 billion.
What It Means for the Market
For consumers, the deal’s longer-term promise is broader coverage, faster speeds, and satellite connectivity baked into existing devices — without extra hardware. For enterprises and carriers, it introduces a credible second option in a market Starlink has largely defined. For Apple, it provides continuity and potentially a more powerful partner as satellite features expand beyond emergency services.
The satellite internet market is no longer a single-competitor story. Amazon’s acquisition of Globalstar draws a clear line: the competition is underway, the infrastructure investment is accelerating, and the next few years will determine whether Amazon Leo can build the scale to make the rivalry meaningful.
