Amazon to Acquire Globalstar for $11.6 Billion in Challenge to SpaceX’s Starlink

Deal sets up a direct challenge to SpaceX’s Starlink satellite internet business

Apple, which holds a 20% stake in Globalstar, also welcomed the acquisition

Amazon announced on Aug. 14 that it will acquire US satellite communications company Globalstar for $11.6 billion. The move appears aimed at competing with Starlink, the satellite internet business operated by Elon Musk’s SpaceX.

The acquisition will give Amazon access to Globalstar’s network of more than 20 low-Earth orbit satellites. Amazon also plans to use the deal to prepare for a full-scale rollout of its own low-Earth orbit satellite internet business, Leo. The company aims to link satellite internet directly to the mobile devices of its e-commerce customers and begin offering voice, data and messaging services starting in 2028.

Globalstar was founded in Louisiana in 1991. As of the end of last year, it had 800,000 subscribers to its mobile satellite communications service. Globalstar shares rose 9.63% to close at $79.91 on Nasdaq on Aug. 14 after news of the Amazon acquisition.

Apple, one of Globalstar’s major shareholders, also welcomed Amazon’s decision. Apple invested $1.5 billion in Globalstar in 2024 to acquire a 20% stake.

In a statement, Apple said it has a proven track record of working with Amazon in areas including cloud computing and other infrastructure solutions. It added that it wants to strengthen its partnership with Amazon Leo.

Speculation about Amazon’s pursuit of Globalstar was effectively confirmed after the Financial Times reported on Aug. 1 that the company was seeking a deal. The newspaper said at the time that if Amazon succeeds in buying Globalstar, e-commerce companies could move more directly to expand their low-Earth orbit satellite businesses.

Amazon has been preparing to officially launch its low-Earth orbit satellite internet service by the end of this year after launching about 200 satellites since April last year. The company plans to launch about 7,700 satellites this year for use in operating the service, but delays in satellite deployment have disrupted that plan.

SpaceX’s Starlink is currently the dominant player in the satellite internet market. It has about 10,000 low-Earth orbit communications satellites and 9 million users.

Lee Mi-a, Hankyung.com reporter mia@hankyung.com