Amazon Acquires Globalstar for $11.5 Billion to Challenge SpaceX Starlink

Amazon agreed to acquire satellite operator Globalstar for approximately $11.5 billion, or $90 per share, in a deal announced in April 2026.

The acquisition gives Amazon Globalstar's existing satellite operations, infrastructure, and spectrum licenses. Amazon plans to use these assets to build its direct-to-device satellite system, which would allow smartphones and other devices to connect directly to satellites without a ground-based cellular network.

The deal puts Amazon in more direct competition with SpaceX's Starlink, which has become the dominant player in satellite internet. Amazon has its own Project Kuiper satellite initiative, but it has lagged behind Starlink in deployment and subscriber numbers.

Globalstar currently provides voice and data services through a network of low-Earth orbit satellites. Its spectrum licenses are considered particularly valuable for building a direct-to-device service.

Amazon's cloud unit, AWS, reported that its AI revenue run rate topped $15 billion in the first quarter of 2026. The company's chips business now has an annual revenue run rate above $20 billion. Amazon's 2026 capital expenditure plan is largely tied to AI infrastructure and customer commitments.

The Globalstar acquisition fits into Amazon's broader strategy of building infrastructure that supports both its consumer services and its cloud business. Satellite connectivity could also support Amazon's logistics operations in areas with limited ground-based internet access.

The deal is subject to regulatory approval. Neither company disclosed a timeline for closing.