A United Launch Alliance Atlas V rocket sits on the launch pad carrying Amazon’s Project Kuiper Internet Network satellites, which are expected to eventually rival Elon Musk’s Starlink system, to the Cape Canaveral Space Station in Cape Canaveral, Florida, April 9, 2025.
Steve Nésius | Reuters
Amazon said On Tuesday he would acquire Global star for $90 per share, in a deal worth approximately $11.57 billion.
The transaction will give the nascent Amazon Lion satellite internet business gets a boost as it competes with Elon MuskIt is EspaceX.
Globalstar shares jumped more than 10%. Amazon’s stock gained more than 3%.
Under the terms of the deal, Amazon said it would acquire Globalstar’s existing satellite operations, infrastructure and assets, including certain spectrum licenses with global permissions. Globalstar’s new satellites and its existing fleet will operate alongside Amazon’s network.
Amazon said the acquisition would allow it to build its own satellite system directly connected to devices, with deployment expected to begin in 2028.
“By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer obsession and innovation, customers can expect faster, more reliable service in more places, keeping them connected to the people and things that matter most,” Panos Panay, Amazon’s senior vice president of devices and services, said in a statement.
Read more CNBC tech newsGlobalstar shareholders will choose to receive either $90 in cash or 0.3210 shares of Amazon common stock for each Globalstar share they own, the companies said.
The transaction is expected to be finalized in 2027.
Along with the move, Amazon said it also reached an agreement with Apple to provide satellite connectivity for current and future iPhone and Apple Watch features.
Apple took a 20% stake in Globalstar in 2024 as part of a An investment of 1.5 billion dollars to strengthen the company’s constellation and ground infrastructure. Globalstar, which operates about 24 satellites, powers Apple’s Emergency SOS feature that allows its devices to send text messages in isolated areas.
Six years ago, Amazon revealed its plans to build a constellation of thousands of Earth satellites, designed to deliver high-speed, low-latency internet to consumers, businesses and governments, offering connections through square-shaped terminals.
The company has launched more than 240 satellites since last April through a series of rocket launches managed by partners such as United Launch Alliance and SpaceX. It recently renamed the Leo service Project Kuiper.
Amazon has faced delays in its satellite deployment stages. The company in January request The Federal Communications Commission has asked for more time to meet a deadline that requires it to launch about 1,600 satellites by July 2026.
Amazon tries to catch up with SpaceX Star link service, which currently dominates the Internet market from space. Starlink has more than 10,000 satellites in orbit and more than 9 million users.
SpaceX also has a brand new direct-to-device sales business called Starlink Mobile. The company has acquired several spectrum licenses from EchoStar as he seeks to expand this network.
President of the FCC Brendan Carr told CNBC on Tuesday that the agency would review Amazon’s Globalstar deal. He said the FCC was “very open-minded” about the acquisition and that it had the potential to make Amazon a competitor to SpaceX in direct-to-cell services.
“Ultimately, we’ll have to look at the documents and see, but it’s, you know, consistent with the long-term vision that we need to have the United States lead in this next generation era of direct communications technologies,” Carr said in an interview on CNBC.Screamed in the street”.
Both Amazon and SpaceX have requested FCC approval to expand their satellite constellations. The agency recently granted SpaceX’s request to put 7,500 others satellites in orbit, as well as Amazon’s petition to deploy an additional satellite 4,500 satellites.
Carr said his agency is taking an “all gas, no brakes” approach in an effort to grow the U.S. space economy.
He said the FCC was open to SpaceX’s plans. orbital data center planswhich would involve the deployment of a million satellites. Amazon provoked a severe reprimand from Carr last month after urging the agency to reject SpaceX’s application.
“Ultimately, we are not the arbiter of the success or failure of technology,” Carr told CNBC. “We also shouldn’t be a constraint, which is why we’ve asked staff to act quickly on all of these different applications.”
