✎ Contributed by Ty Griffin
Amazon announced Tuesday it will acquire satellite communications firm Globalstar in an $11.57 billion transaction, expanding its ambitions in space-based internet and positioning itself more directly against Elon Musk’s Starlink network. According to Reuters, the deal adds Globalstar’s roughly two dozen satellites to Amazon’s growing Project Kuiper constellation as the company works toward deploying approximately 3,200 low-Earth-orbit satellites by 2029.
The acquisition strengthens Amazon’s position in direct-to-device (D2D) satellite connectivity, a segment designed to enable mobile devices to connect without traditional ground-based cellular towers. Globalstar’s network currently powers Apple’s Emergency SOS and other satellite-enabled features, and Amazon said those services will continue under an agreement with Apple. The transaction represents a premium of more than 31% to Globalstar’s April 1 closing price and is expected to close next year, pending regulatory approvals.
Market Reaction
- Amazon.com Inc. (NASDAQ: AMZN): $249.60, up $9.71 (4.05%)
- Apple Inc. (NASDAQ: AAPL): $257.57, down $1.63 (0.63%)
- Iridium Communications Inc. (NASDAQ: IRDM): $35.99, up $0.76 (2.14%)
- Viasat Inc. (NASDAQ: VSAT): $57.33, up $0.78 (1.38%)
- AST SpaceMobile Inc. (NASDAQ: ASTS): $88.56, down $10.41 (10.52%)
Investor Sentiment
Amazon’s strong gain suggests investors view the deal as a strategic acceleration of its satellite roadmap, particularly in D2D services where spectrum positioning and early deployment can create durable competitive advantages. Shares of Iridium Communications Inc and Viasat Inc also advanced, reflecting broader optimism around satellite communications infrastructure and potential industry consolidation.
However, AST SpaceMobile Inc declined sharply, highlighting how competitive positioning within the direct-to-device space may shift as Amazon deploys additional capital and scale. The transaction underscores that the satellite broadband market is increasingly becoming a capital-intensive arms race, where network size, launch capacity and regulatory access may ultimately determine long-term winners.
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