GoKawiilAmazon keeps reaching for the skies, literally. The commerce giant is acquiring satellite service provider Globalstar to enhance Amazon Leo, its own satellite operation, when it eventually provides direct-to-device service. It's another sign of the accelerating space race to catch up with Starlink to provide communications services from the skies.
In the deal, reportedly valued at $11.6 billion, Amazon will get Globalstar's satellite operations, infrastructure and assets. Globalstar, based in Louisiana, has 24 satellites and plans to expand to 32 later this year, according to its website. The company provides critical and emergency communications to customers around the world, Tuesday's announcement said.
The transaction also involves Apple. Globalstar provides emergency satellite connectivity for iPhones from the iPhone 14 and up, as well as the Apple Watch Ultra 3, for texting emergency services, requesting roadside assistance, sharing locations and messaging friends and families during natural disasters. Apple bought a 20% stake in Globalstar in November 2024.
Amazon said in Tuesday's announcement that Leo would power satellite services for the iPhone and the Apple Watch, including Emergency SOS via satellite.
Amazon and Globalstar expect their transaction to be completed in 2027, pending regulatory approval.
Playing catchup with Starlink
Amazon Leo -- the "Leo" stands for "low Earth orbit," which is where its satellites are positioned in space -- is trying to become a major competitor to Starlink, the global satellite service leader owned by Elon Musk's SpaceX. Starlink has more than 10,000 satellites in orbit, providing connectivity to smartphones, devices, vehicles and appliances as an alternative to cellphone towers.
Formerly known as Project Kuiper, Leo aims to start providing satellite broadband connectivity services in early 2028, but there have been hiccups. Amazon CEO Andy Jassy told shareholders last week that Leo would not begin providing Wi-Fi service to governments, airlines and other businesses until mid-2026. One of the issues is that Amazon must have 1,600 satellites in orbit by July, per a Federal Communications Commission deadline, but it currently has only 250.
Amazon has asked the FCC for an extension on the mandate, but the agency has not ruled yet.
Delta Air Lines and JetBlue have deals with Amazon to use Leo for in-flight connectivity for passengers in the future.
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