In a major move that could reshape the satellite communications market, Amazon to buy Globalstar for $11.57 billion has been announced by the companies, marking a significant step by Amazon to expand its presence in space-based connectivity. The deal reflects Amazon’s growing push to compete directly with SpaceX’s Starlink, led by Elon Musk, which currently dominates the satellite internet sector.
Amazon looks to close the gap with Starlink
The Amazon Globalstar acquisition comes at a time when Starlink holds a clear advantage, with a significantly larger satellite network already in orbit and a growing user base across the United States. Amazon, in contrast, is still in the early stages of building its own low Earth orbit satellite system, making strategic moves like this critical to accelerating its progress.
Globalstar operates a constellation of satellites and holds valuable spectrum rights, including capabilities that support direct-to-device communication. These assets are expected to play an important role as Amazon expands its satellite services, particularly in areas where traditional broadband infrastructure remains limited.
Strengthening long-term satellite strategy
The reported Amazon to buy Globalstar for $11.57 billion aligns with Amazon’s broader low Earth orbit satellite program, under which the company plans ~3,200 satellites to deliver broadband connectivity. This long-term strategy is aimed at improving internet access in underserved and rural regions across the United States.
Through the Amazon Globalstar acquisition, Amazon gains access to existing satellite infrastructure and licensed spectrum, which could support its ongoing deployment efforts. However, industry reports note that Amazon still faces challenges related to launch capacity and scaling its network at the pace of established competitors.
Big Tech turns to space for future growth
The deal also highlights a broader wave of big tech satellite investments, as major technology companies increasingly view space as a key area for future expansion. Satellite internet is becoming an essential part of digital infrastructure, especially as demand grows for reliable connectivity beyond urban centers.
Such big tech satellite investments underline a shift in strategy across the industry, where control over satellite networks is seen as critical to long-term competitiveness in telecommunications and cloud services.
Regulatory review remains a key step
While Amazon to buy Globalstar for $11.57 billion marks a significant development, the transaction is not yet complete and remains subject to regulatory approvals in the United States, including review by the Federal Communications Commission.
The timeline for closing has not been finalized, and Amazon is expected to continue building its satellite network in parallel. If approved, the deal could intensify competition in the satellite internet market, offering more options over time for US consumers and businesses seeking reliable connectivity.
