Amazon and Globalstar have announced a definitive merger agreement under which Amazon will acquire the satellite operator. The acquisition is designed to integrate direct-to-device (D2D) capabilities into the Amazon Leo satellite network, extending cellular coverage to areas outside the reach of traditional terrestrial networks. Concurrently, Amazon and Apple announced a partnership for Amazon Leo to power satellite features for current and future Apple devices.
These initiatives are part of Amazon’s broader strategy to establish space-based connectivity by collaborating with mobile network operators (MNOs) and other partners globally.
The Globalstar Acquisition
Globalstar operates as a mobile satellite services (MSS) provider, specializing in non-geostationary orbit (NGSO) satellites and emergency communications. Through this merger, Amazon acquires Globalstar’s existing operations, physical infrastructure, and MSS spectrum licenses.
Globalstar’s current satellite fleet, along with its new satellites featuring expanded capabilities, will operate alongside the existing Amazon Leo broadband system and Amazon’s planned D2D network to provide continuous connectivity for consumer, enterprise, and government sectors.
Amazon Leo Direct-to-Device (D2D) Expansion
Amazon Leo plans to deploy its own next-generation D2D satellite system beginning in 2028. This system aims to deliver advanced voice, data, and messaging services directly to mobile phones and cellular devices.
Key technical targets for the Leo D2D system include:
- Higher spectrum utilization and efficiency compared to legacy direct-to-cell systems.
- Seamless integration with Amazon’s first- and second-generation Leo systems.
- A unified network of thousands of low Earth orbit satellites with the capacity to support hundreds of millions of global endpoints.
Powering Apple’s Satellite Features
Amazon and Apple have signed an agreement to transition and expand satellite connectivity for iPhone and Apple Watch users. Currently, Globalstar powers satellite services—such as Emergency SOS, location sharing, and roadside assistance—for the iPhone 14 or later and the Apple Watch Ultra 3.
Under the new agreement, Amazon will maintain support for Apple devices currently utilizing Globalstar’s existing and upcoming constellations (manufactured by MDA Space). Furthermore, Amazon will collaborate with Apple to develop future satellite services utilizing the expanded Amazon Leo network.
Strategic Industry Impact
According to the announcement, the merger and subsequent partnerships are intended to support several key sector goals:
- Accelerating Deployment: Combining Amazon’s low Earth orbit network with Globalstar’s spectrum allows for faster deployment of D2D connectivity in areas where terrestrial infrastructure is cost-prohibitive or delayed.
- Strengthening Network Resilience: D2D connectivity provides a critical fallback during natural disasters like hurricanes or wildfires when terrestrial networks fail. It also supports mission-critical operations such as maritime distress, search-and-rescue, and remote workforce communications.
- Driving Economic Growth: The investment in Amazon Leo is expanding job opportunities in engineering and manufacturing across the U.S. and Europe, while enabling IoT applications and supply chain connectivity to close the global digital divide.
Key Transaction Terms
The transaction has been approved by written consent from Globalstar stockholders holding approximately 58% of the combined voting power. The merger is expected to close in 2027, pending regulatory approvals and Globalstar’s achievement of specific HIBLEO-4 replacement satellite milestones.
Prior to closing, Globalstar stockholders can elect to receive one of the following for each share of common stock:
- $90.00 in cash
- 0.3210 shares of Amazon common stock (value capped at $90.00 per share)
- Financial Conditions:
- Proration: Cash elections are capped at 40% of total Globalstar shares. Any excess cash elections will automatically convert to stock consideration on a pro rata basis.
- Downward Adjustments: The total transaction consideration is subject to a maximum downward adjustment of $110 million if Globalstar fails to meet specific operational milestones.