Amazon Announces $11.5 Billion Acquisition of Globalstar to Enhance Satellite Internet Operations

5 billion. The acquisition targets bolstering Amazon's satellite internet efforts amid competition in the sector. Shares of Globalstar rose more than 9% in premarket trading following the news. 3210 shares of Amazon common stock for each Globalstar share.

The deal encompasses Globalstar's existing satellite operations, infrastructure, assets, and spectrum licenses with global authorizations. Globalstar's new and existing satellites will integrate with Amazon's network.

Acquisition Details and Integration The acquisition enables Amazon to develop a direct-to-device satellite system, with deployment expected to begin in 2028.

This system aims to provide faster and more reliable service in additional locations. Amazon's satellite internet service, rebranded as Leo from Project Kuiper, involves a constellation of low Earth orbit satellites for high-speed, low-latency internet to consumers, corporations, and governments.

Amazon has launched more than 240 satellites since last April using partners such as United Launch Alliance and SpaceX.

Connections occur through square-shaped terminals. The service targets broad accessibility for various users.

Background on Amazon's Satellite Initiatives Six years ago, Amazon outlined plans for thousands of low Earth orbit satellites to deliver internet services.

The project has progressed through multiple rocket launches. A recent launch involved a United Launch Alliance Atlas V rocket carrying Project Kuiper satellites from Cape Canaveral Space Force Station in Florida on April 9, 2025.

Amazon's efforts focus on expanding coverage and reliability. The acquisition of Globalstar provides additional infrastructure to support these goals. Globalstar operates a fleet of satellites and holds relevant spectrum licenses.

Integration of these assets will occur alongside Amazon's existing deployments. The deal requires approval from Globalstar stockholders and regulatory bodies.

Market Context and Competition Satellite internet providers aim to serve underserved areas with broadband access.

Amazon's push includes partnerships for launches and technology development. 5 billion valuation reflects the strategic importance of satellite capabilities. Post-announcement, market reactions included gains in Globalstar's stock.

Amazon's shares showed no immediate significant change in the provided reports. The acquisition aligns with broader trends in space-based connectivity.