Amazon announced on Tuesday (April 14, 2026) the acquisition of Globalstar in a deal valued at US$11.57 billion. The transaction aims to strengthen the tech giant’s satellite business and position it as a more robust competitor in the satellite internet market, currently dominated by Starlink and Elon Musk. The news marks a significant step in Amazon’s expansion into the space sector.
The announcement of the acquisition boosted shares of Globalstar, which rose more than 9% in pre-market trading. Esta valuation reflects the growing interest in the sector and the market’s confidence in the strategic potential of the negotiation. Amazon, with this measure, seeks to accelerate the development of its own satellite constellation, Project Kuiper, and offer global connectivity services.
Acquisition details and market value
The agreement states that Globalstar shareholders will have the option of receiving $90 in cash or 0.3210 shares of Amazon common stock for each share of Globalstar they own. Esta Payment flexibility is a common strategy in large mergers and acquisitions, allowing shareholders to choose the option that best aligns with their financial objectives. Antes of the formal announcement, Globalstar shares had already seen an increase of more than 6% in the previous two weeks, driven by media reports about discussions between the companies. In the previous year, the value of Globalstar shares almost doubled, and rose around 12% in 2026 before the acquisition was confirmed, demonstrating the company’s perceived value in the market. Shares of Amazon, in turn, saw a slight increase of approximately 1% on Tuesday.
The $11.57 billion valuation places this acquisition among the largest recent transactions in the satellite technology and communications sector. Globalstar’s market value has been significantly influenced by its technology and existing satellite base, although its size is modest compared to the infrastructure of larger competitors. Amazon’s interest in acquiring a company with an established niche and strategic partnerships indicates a search for assets that can complement and accelerate its own long-term projects in space. Regulatory approval will be a crucial factor in the successful completion of the deal, given the scale of Amazon and the strategic nature of the sector.
Expansion of Amazon in the space sector
The acquisition of Globalstar complements Amazon’s ambitious plans for its Project Kuiper, an initiative that aims to deploy approximately 3,200 low-orbit Terra satellites by 2029. The company has a regulatory deadline that requires approximately half of these satellites to be in orbit by July 2026. Atualmente, Amazon operates a network of more than 200 satellites and is preparing to launch its own satellite internet services later this year. The addition of Globalstar provides Amazon with immediate access to the company’s existing network, which has two dozen satellites in low orbit. Esta infrastructure, although small, can be critical to testing technologies and validating the business model before Kuiper large-scale launch.
Amazon’s massive investment in Project Kuiper and the acquisition of Globalstar are strategic moves to diversify its business and enter a market with high growth potential. The company plans to offer broadband connectivity to customers in remote areas lacking terrestrial infrastructure, in addition to serving corporate and government markets. The ability to operate its own constellation of satellites allows Amazon greater control over the quality of service and security of its network, crucial aspects for differentiation in the competitive satellite internet market. The technological and regulatory challenges are significant, but the financial commitment demonstrates Amazon’s seriousness in becoming a relevant player in this scenario.
The fierce dispute with Starlink
Amazon’s acquisition of Globalstar intensifies competition with Starlink, the satellite unit of SpaceX, led by Elon Musk. Starlink is currently the dominant provider of satellite internet services, with a much more extensive network. In contrast to the just over 200 satellites operated by Amazon to date, SpaceX already has around 10,000 units in orbit, serving more than nine million users globally. Essa massive difference in infrastructure and customer base underlines the challenge Amazon0 faces in establishing itself in this market. Amazon1 has benefited from continuous and accelerated deployment, consolidating its global leadership.
The space race to deliver internet via satellite is a battleground for tech giants, where scale and speed of deployment are crucial. Amazon, with Project Kuiper, is seeking to catch up through substantial investments and strategic acquisitions. Globalstar, although smaller in terms of constellation, brings with it spectrum licenses and operational expertise that could accelerate the entry of Amazon. The ability to offer a viable alternative to Starlink will depend not only on the number of satellites, but also on the quality of service, price and innovation capacity of the two companies. The competition promises to be beneficial for consumers, with the potential to reduce costs and improve coverage.
The role of Globalstar and the partnership with Apple
Globalstar, headquartered at Covington, Louisiana, is widely known for providing the technology that powers Apple’s “SOS from Emergência” feature on iPhones and Apple Watches. Esta strategic partnership with giant Cupertino’s technology has been a pillar for Globalstar, with Apple investing approximately $1.5 billion in the company. Covington0’s network, comprised of two dozen Covington1 low-orbit satellites, provides crucial communications services. Late last year, Covington3 announced that a new network, supported by Covington4, would expand its total to 54 satellites, including a small number of backup units.
- The company offers a diverse range of services, which are essential for various sectors. Esses services include:
- Voice:Conectividade voice in remote areas where traditional cellular coverage is non-existent.
- Data:Transmissão of data for communications and operations, especially in challenging environments.
- Asset Tracking:Soluções to monitor the location of vehicles, equipment and other valuable property.
These services serve a broad customer base across diverse markets, including businesses, governments and consumers. In a move parallel to the acquisition, Amazon and Apple have entered into an agreement to ensure continued power supply for satellite-based security features such as Emergência’s SOS and “Search” for iPhone and Apple Watch users. Isso ensures that critical functionality that depends on Globalstar’s network continues uninterrupted after the change of ownership.
Next steps and regulatory approvals
Completion of Globalstar’s acquisition by Amazon is projected to occur next year. Closing of the transaction is subject to a number of conditions, including obtaining necessary regulatory approvals from various government authorities. Tais approvals are crucial in large-scale businesses, especially in strategic sectors such as satellite communications, which involve critical infrastructure and national security issues.
In addition to regulatory validations, the agreement is also dependent on Globalstar meeting specific milestones related to satellite deployment. Estes milestones ensure that the company continues to develop and expand its network as planned, protecting Amazon’s investment. The integration of Globalstar into Amazon’s operations will be a complex process, but the expectation is that it will significantly strengthen Amazon’s position in the competitive satellite internet market.