Amazon to Acquire Globalstar for $11.57 Billion, Preserving Apple Satellite Services and Highlighting Blue Origin’s Launch Role
MONTREAL, April 14, 2026 — Amazon said Tuesday it has agreed to acquire satellite communications company Globalstar in a transaction valued at about $11.57 billion, a deal that expands Amazon’s direct-to-device satellite capabilities, keeps Globalstar’s Apple-linked services in place, and sharpens focus on whether launch providers including Blue Origin can help Amazon scale its broader low-Earth-orbit network fast enough to compete more effectively with SpaceX’s Starlink. (Reuters)
Under the deal, Globalstar shareholders may elect to receive either $90 in cash or 0.3210 shares of Amazon common stock for each Globalstar share, subject to adjustment. Reuters reported the transaction is expected to close in 2027, pending regulatory approvals and specified deployment milestones. (Reuters)
Amazon said Globalstar’s satellites, spectrum licenses and operating assets will help Amazon Leo add direct-to-device, or D2D, services to future generations of its satellite network. The company said the D2D service is intended to extend voice, text and data coverage beyond terrestrial cellular towers, with deployment targeted from 2028. (Amazon News)
A key part of the announcement is Apple. Amazon said it has signed an agreement with Apple to continue supporting satellite features for current and future supported iPhone and Apple Watch devices, including services such as Emergency SOS, Messages, Find My and Roadside Assistance via satellite. Reuters separately reported that Globalstar’s existing Apple relationship remains intact under the transaction. (Amazon News)
Apple’s financial relationship with Globalstar predates the Amazon deal. Reuters reported Apple invested about $1.5 billion in 2024 to support the expansion of its iPhone satellite services. Globalstar’s October 2024 SEC filing said a customer agreed to provide up to $1.1 billion in infrastructure prepayments and to buy 400,000 Class B units for $400 million, representing a 20% equity interest in the Globalstar special-purpose entity tied to the extended network. (Reuters)
That structure matters because it indicates Apple’s 20% position was tied to the network vehicle rather than a simple 20% ownership stake in Globalstar’s public parent. Based on the filing, the arrangement gave Apple economic exposure to the satellite expansion that supports its device features while leaving Amazon free to acquire the parent company and keep Apple as a commercial partner. (SEC)
The Blue Origin angle is separate from the merger itself but relevant to Amazon’s competitive position. Reuters reported that analysts do not view the Globalstar acquisition as a fix for Amazon’s launch bottleneck. Amazon has deployed 243 of the 3,236 satellites it has promised for its broader constellation, and Reuters said shortages, manufacturing disruptions and launch setbacks have forced the company at times to use SpaceX Falcon 9 rockets. (Reuters)
Blue Origin remains part of Amazon’s longer-term launch plan. Reuters reported in 2022 that Amazon secured 83 launches over five years for Project Kuiper, including 12 launches on Blue Origin’s New Glenn rocket with options for up to 15 more. Reuters also reported Tuesday that New Glenn made its debut flight in January 2025 but has not yet reached the launch cadence Amazon needs to accelerate deployment materially. (Reuters)
The deal gives Amazon Globalstar’s roughly two dozen satellites and strengthens its position in direct-to-device communications, an area seen as strategically important for emergency connectivity and service in places beyond normal cellular coverage. Reuters reported Starlink already serves more than 9 million users globally and operates about 10,000 satellites, leaving Amazon still far behind in overall scale even after the acquisition. (Reuters)
Reuters also reported Globalstar shares rose more than 10% after the announcement, while Amazon shares rose about 3%, reflecting investor interest in the transaction’s implications for the satellite communications market and the competitive race with Starlink. (Reuters)
Albert Laurin