PARIS, France – E-commerce and technology conglomerate Amazon announced Tuesday a definitive acquisition agreement to acquire U.S. telecommunications satellite operator Globalstar, a move designed to supercharge the expansion of Amazon’s planned space-based internet network and mount a direct competitive challenge to Elon Musk’s market-leading Starlink service.
Under the terms of the deal, Amazon will offer Globalstar shareholders $90 per share through a combined cash-and-stock transaction, valuing the satellite firm at approximately $9 billion – a valuation first flagged by a Financial Times report earlier this month that fueled widespread market speculation of the impending acquisition.
Jeff Bezos-founded Amazon has been developing its low-Earth orbit (LEO) satellite internet constellation, branded Project Kuiper, with the core mission of delivering high-speed broadband connectivity to underserved communities and users across every corner of the globe, a goal that has become an increasingly high priority for the tech giant as demand for global connectivity surges.
“There are billions of customers out there living, travelling and operating in places beyond the reach of existing networks, and we started Project Kuiper to help bridge that divide,” stated Panos Panay, Amazon’s Senior Vice President for Devices and Services, in an official press release announcing the deal.
The acquisition has already secured backing from roughly 58% of Globalstar’s existing shareholders, with regulatory and procedural approvals expected to push the closing of the transaction to 2027. A key strategic side agreement tied to the acquisition will see Apple – which currently holds a 20% minority stake in Globalstar – transition its existing satellite-based iPhone and Apple Watch services, including its popular Emergency SOS feature, to Amazon’s Project Kuiper network once the constellation is fully operational.
At present, Project Kuiper has approximately 200 satellites active in low-Earth orbit, a fraction of the size of Starlink’s current deployed network of more than 10,000 satellites that have already cemented the SpaceX-owned service’s dominance in the fast-growing satellite internet market.
The Globalstar acquisition comes at a moment of intense market anticipation around SpaceX, with widespread speculation that Musk is preparing to launch an initial public offering for the aerospace firm that could raise as much as $75 billion. If achieved, the IPO would become the largest public offering in global history, underscoring the massive commercial stakes in the burgeoning satellite internet industry.