Satellite Internet: Amazon takes over Globalstar and attacks Starlink
Amazon buys the satellite operator Globalstar for 9.8 billion euros. By expanding its own LEO network, the company is directly attacking the top dog, Starlink. At the same time, an additional agreement secures emergency call services for Apple users.
Billion dollar deal in space
The technology group Amazon today announced the takeover of the satellite operator Globalstar. The company is securing important infrastructure and radio frequencies for around 9.8 billion euros in order to expand its own Amazon Leo satellite network. This puts the group in direct competition with established providers such as Starlink. The transaction is expected to close in 2027, provided the relevant regulatory authorities approve the purchase.
The acquisition gives Amazon direct access to Globalstar’s global ground station network as well as L-band frequencies and S-band frequencies. This is essential for direct-to-device services. Such connections make it possible to connect commercially available cell phones directly to satellites without additional hardware. Amazon plans to put its own system for voice and data services into operation from 2028. This saves the group development time on the way to its own satellite internet.
As the company reports in an Amazon announcement, the deal also affects a third-party customer. Apple has previously used the Globalstar infrastructure for the satellite-based emergency call function on the iPhone 14 and newer models. To ensure continuity of safety-critical services, Amazon and Apple have signed a separate agreement. The exact conditions remain undisclosed, but guarantee the smooth operation of the existing functions for all end users.
Competition of networks
The acquisition represents an important step for Amazon, as the purchase of existing technology accelerates the building process. So far, Amazon LEO has positioned around 200 satellites in low Earth orbit. In comparison, its competitor Starlink already operates over 10,000 units. As part of the takeover, Globalstar shareholders can choose whether they would like to receive around 76 euros per share in cash or the equivalent in Amazon shares.
Cash payments are limited to 40 percent of the total shares. A potential disadvantage for Amazon could be the high running costs of the acquired infrastructure. However, Globalstar was able to record an operating profit for the first time in 2025, which improves its financial position.
