Amazon's $11.6B Globalstar deal puts it in Starlink's orbit

What's the deal? Amazon has agreed to buy satellite operator GlobalstarDealroom has a profile for this one. Try Dealroom → for $11.6B, its biggest move yet to compete with Elon MuskDealroom has a profile for this one. Try Dealroom →'s StarlinkDealroom has a profile for this one. Try Dealroom →. The deal is expected to close in 2027.

Globalstar, founded in 1991, currently powers Apple's Emergency SOS feature on iPhones and Apple Watch — allowing users to send messages, contact emergency services, and share locations without cell coverage. Apple had invested $1.5B in Globalstar in 2024 for a 20% stake, giving it the power to block any sale; Amazon secured Apple's sign-off, and the two companies announced a long-term agreement to continue satellite services for Apple devices under Amazon Leo.

Why now? Amazon Leo — rebranded from Project Kuiper in April 2025 — has been badly outpaced by Starlink. It has roughly 200 satellites in orbit versus Starlink's 10,000, and Amazon recently asked the Federal Communications CommissionDealroom has a profile for this one. Try Dealroom → to extend a deadline requiring 1,600 satellites aloft by July 2026.

Globalstar brings more than just satellites. Its most valuable asset is Band 53, a midband spectrum licence exclusive to Globalstar and purpose-built for direct-to-device (D2D) communication — the kind of service that connects smartphones directly to satellites without cell towers. Amazon plans to launch its own D2D service in 2028.

What could go wrong? Globalstar's current constellation is just 24 satellites — a thin base on which to build global ambitions. Amazon Leo itself is still in limited commercial testing, and closing a deal of this size while simultaneously racing to deploy thousands of satellites is operationally complex.

Starlink's lead is formidable: over 10 million active customers, roughly 10,000 satellites, and a roster of major airline and carrier partners that Amazon has barely begun to match. SpaceX is also preparing an IPO that could supercharge its capital base further.

The signal: The deal marks the start of a three-way race for the direct-to-device market — Amazon, SpaceX, and AST SpaceMobile — that will determine which company owns connectivity for the billions of people in areas without reliable cell coverage. Spectrum rights, not just satellites, are becoming the scarce resource; Globalstar's Band 53 licence is the kind of asset that simply cannot be replicated.

For Apple, the transition to Amazon Leo also signals that satellite connectivity is shifting from an emergency feature to a core part of the smartphone stack.

Sources:
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TechCrunch
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J.V.