Amazon has announced a major strategic move: the $11.5 billion acquisition of satellite operator Globalstar, a deal aimed at accelerating its satellite‑communications ambitions and narrowing the gap with Starlink, Elon Musk’s dominant player in the sector. The transaction — reported by Bloomberg, Forbes, and CNBC — marks Amazon’s largest purchase since its 2017 acquisition of Whole Foods and is expected to close in 2027, pending regulatory approval from U.S. authorities, including the Federal Communications Commission (FCC).
Through this acquisition, Amazon will integrate Globalstar’s infrastructure — including spectrum licenses and a constellation of more than 20 low‑Earth‑orbit satellites — into its expanding Amazon Leo network, formerly known as Project Kuiper. The combined system will support Direct‑to‑Device (D2D) connectivity, enabling mobile phones to communicate directly with satellites without relying on ground antennas. This technology promises reliable coverage in remote regions, at sea, and in mountainous areas where traditional cellular networks fail.
Amazon plans to deploy roughly 3,200 satellites by 2029, with half required to be in orbit by July. According to TechRepublic, the company aims to launch its own D2D service in 2028 and begin offering satellite internet later this year. Panos Panay, Amazon’s Devices & Services chief, emphasised the mission: “Billions of people live and work in places where networks don’t reach. Amazon Leo is designed to close that gap.”
The acquisition also strengthens Amazon’s unexpected partnership with Apple. Both companies confirmed they will continue collaborating on satellite‑powered features for iPhone and Apple Watch — including Emergency SOS, Find My, and roadside assistance. Apple invested $1.5 billion in Globalstar in 2024 to expand its satellite coverage to 54 satellites, securing a 20% stake in the company. The new Amazon‑Globalstar‑Apple alignment signals a growing convergence between satellite infrastructure and consumer devices.
Meanwhile, Starlink remains the industry leader. SpaceX’s satellite internet service already supports more than 9 million users worldwide and operates the world’s largest satellite constellation, with over 10,000 satellites in orbit. Starlink is also developing its own D2D capabilities through partnerships with telecom operators such as T‑Mobile. Analysts estimate that Starlink contributes between 50% and 80% of SpaceX’s total revenue.
According to Bloomberg Intelligence, the global satellite‑communications market could exceed $200 billion in the coming years. With the Globalstar acquisition, Amazon is positioning itself as a direct challenger to Musk’s dominance — transforming the race for global connectivity into one of the most competitive battles in the tech and aerospace industries.