E-commerce giant Amazon (NASDAQ: AMZN) has struck a deal to acquire Globalstar (NASDAQ: GSAT), a leading mobile satellite service provider. Amazon will pay $10.8bn for Louisiana-based Globalstar, with shareholders choosing to receive either cash or Amazon shares.

• Globalstar operates a constellation of low-Earth-orbit (LEO) satellites that provide mobile services in areas without cellular coverage. Its constellation powers handheld satellite phones, emergency text messaging in remote areas, remote asset tracking, and related services.

• Amazon is building out Leo, a satellite-based internet service that rivals SpaceX’s Starlink, the dominant industry player. SpaceX has deployed over 10,000 LEO satellites to power the Starlink network, while Leo is in the early stages, with about 200 satellites deployed out of a planned 3,000+ constellation.

• Starlink also offers direct satellite-to-phone services, putting it in direct competition with Globalstar. Amazon plans to launch its satellite-to-phone service in 2028, and acquiring Globalstar gives it a solid footing.

Globalstar’s largest customer is Apple (NASDAQ: AAPL), the popular iPhone maker. 85% of Globalstar’s network capacity is allocated to Apple, powering satellite messaging for iPhones (14 and later).

Apple holds a 20% stake in Globalstar, acquired in a $1.5bn deal in 2024. Amazon has negotiated with Apple and agreed to continue supporting satellite connectivity for iPhones post-acquisition.

• Globalstar reported $273mn in revenue in 2025, up 9% from the previous year and its highest annual sales on record. Apple accounted for $172mn, or 63%, of this revenue, according to Globalstar’s annual report.

• Amazon’s offer represents a 31% premium to Globalstar’s market value before reports of an imminent acquisition emerged. Barring regulatory hurdles, the deal is expected to close in 2027.

Update: The deal’s value was corrected to $10.8bn, against an earlier reported $11.6bn figure.

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