Amazon has announced plans to acquire satellite telecommunications firm Globalstar in a deal valued at approximately $11.6 billion. The move aims to strengthen the company's Amazon Leo satellite internet network as it prepares to compete directly with Elon Musk's Starlink.
Under the terms of the agreement, Globalstar shareholders can choose to receive $90.00 in cash per share or 0.3210 Amazon shares, with a maximum value of $90.00 per share. Amazon will acquire Globalstar's operations, infrastructure, and satellite assets, including global MSS spectrum licenses.
According to La Tercera, the acquisition will allow Amazon Leo to "agregar servicios directos a dispositivos (D2D) a su red satelital de órbita baja y extender la cobertura celular a clientes fuera del alcance de las redes terrestres."
Amazon also secured a deal with Apple to integrate Amazon Leo with compatible iPhone and Apple Watch models. This partnership will enable users to send text messages to emergency services, contact family, and share locations via satellite.
A 2026 launch targets global markets
Amazon CEO Andy Jassy confirmed in a letter to shareholders that the official launch of the Amazon Leo service is scheduled for mid-2026. Jassy noted that the company has already placed more than 200 satellites in low Earth orbit, making it the third-largest LEO network currently operating.
"In the last seven years, we have built a low Earth orbit satellite network (Amazon Leo) and have put more than 200 satellites in orbit (making it the third largest LEO network currently in operation). With the launch of several thousand more satellites in the coming years, the constellation is expanding rapidly," Jassy stated.
Jassy claims the new service will offer superior performance compared to current alternatives, specifically citing speeds that are six to eight times better for uploads and twice as fast for downloads. He also noted that the service will be cheaper and integrate seamlessly with AWS for data analysis and AI.
Major clients have already committed to the network. Jassy highlighted that Delta Airlines will use Amazon Leo for Wi-Fi on 500 aircraft starting in 2028. Other confirmed clients include JetBlue, AT&T, Vodafone, Directv Latinoamérica, the Australian National Broadband Network, and NASA.
In Chile, the commercialization of Amazon Leo will be managed by Directv. The service enters a market where Starlink currently holds an 80% share of the satellite internet segment.