Amazon Acquires Globalstar for $11.57B to Challenge Starlink (April 2026)

Amazon on April 14, 2026 announced it will acquire satellite operator Globalstar for approximately $11.57 billion in cash and stock — at $90 per share — in the largest satellite industry acquisition in history. The deal, which will close in 2027 pending regulatory approval, hands Amazon the spectrum licenses, orbital infrastructure, and operational expertise it needs to build a direct-to-device satellite system that can challenge SpaceX's Starlink.

What Happened

Amazon agreed to acquire all of Globalstar's satellite operations, infrastructure, and spectrum licenses in a transaction valued at $11.57 billion. Shareholders can elect to receive $90.00 in cash per share or 0.3210 Amazon shares (both capped at equivalent value), with a proration mechanism limiting cash elections to 40% of total shares. Globalstar shareholders representing 58% of voting power have already approved the deal, accelerating the regulatory path toward a 2027 close.

The acquisition directly fuels Amazon Leo, the company's low-Earth orbit satellite internet venture that currently operates approximately 200 satellites — far behind SpaceX's Starlink fleet of 10,000+. Amazon Leo had an FCC deadline requiring roughly 1,600 satellites in orbit by July 2026 and requested an extension; Globalstar's existing 24-satellite constellation, combined with its agreements to acquire 50+ new satellites and a SpaceX launch contract for 2026, gives Amazon an immediate shortcut around that operational gap.

Key Details

• $11.57 billion deal — $90/share in cash or 0.3210 Amazon shares; expected close in 2027
• Direct-to-device deployment in 2028 — Amazon Leo will use Globalstar's spectrum to deliver voice, text, and data to mobile phones beyond terrestrial network reach, without special hardware
• Apple partnership secured — Amazon and Apple signed an agreement making Amazon Leo the future satellite backbone for iPhone and Apple Watch features, including Emergency SOS via satellite, Find My location sharing, messaging, and roadside assistance (currently powered by Globalstar on iPhone 14+)
• Globalstar's assets — 24 operational LEO satellites, spectrum licenses with global authorizations, agreements for 50+ new satellites, and a SpaceX launch contract for 2026 replacements
• Amazon Leo's enterprise customers — Delta Airlines, AT&T, Vodafone, Australia's NBN, and NASA are already signed
• 3,200+ satellite target — Amazon Leo's full constellation plan once build-out is complete

What Developers and Users Are Saying

On Hacker News (discussion from April 14), the top comment captured the strategic calculus bluntly: "The business model that works seems to be spectrum gambling. Do the minimum amount of satellite investment for decades until someone with a real business plan comes along and has to go through you to get it." Several engineers questioned whether Amazon Leo can realistically challenge Starlink's 10,000-satellite operational lead given the 2028 direct-to-device timeline.

On Reddit's r/space and r/technology, reactions focused on the Apple angle — many users noted that iPhone's satellite emergency features will now route through Amazon's infrastructure, raising questions about continuity during the 2027 ownership transition. GeekWire framed the deal as the opening of an "Amazon vs. Starlink" battle in orbital mobile connectivity.

What This Means for Developers

For developers building on AWS, this acquisition signals that satellite connectivity will become a native AWS service. Direct-to-device satellite APIs through Amazon Leo are a realistic 2028-era offering — potentially enabling offline-first applications, remote sensing, and IoT in areas with no terrestrial coverage, accessible through familiar AWS SDKs. Developers currently using Globalstar APIs (primarily emergency communications and industrial IoT) should monitor migration notices as the 2027 close approaches; no breaking changes are expected before then.

For Apple developers, satellite SOS and location-sharing in iOS continue unchanged. Apple has confirmed a new agreement with Amazon Leo for future iPhone and Apple Watch generations, suggesting the feature set will expand as infrastructure transitions.

What's Next

The deal requires FCC, DOJ, and international regulatory approval before the 2027 close. Amazon will launch Globalstar's replacement satellites via SpaceX in 2026 as planned, maintaining continuity for existing services including iPhone Emergency SOS. Direct-to-device deployment is targeted for 2028. Watch for potential antitrust scrutiny given Amazon's simultaneous position as a major cloud provider, device manufacturer (Kindle, Echo), and satellite operator serving competing telcos (AT&T, Vodafone).

Sources

• Amazon Official Press Release — Primary announcement from Amazon
• TechCrunch — Deal terms and Amazon Leo context
• CNBC — Deal valuation and competitive analysis
• Hacker News Discussion — Developer and technical community reactions
• GeekWire — Amazon vs. Starlink framing
• Via Satellite — Direct-to-device technical context