The push was anticipated, and it is now official. Amazon has signed an agreement to acquire Globalstar, one of the pioneers in satellite mobile services (MSS).
To win over its shareholders, Amazon opened the checkbook: $11.5 billion. The offer offers, at the holder’s option, $90 in cash or 0.3210 Amazon shares per Globalstar share. A subtle financial structure: cash is capped at 40% of the total shares, and a “bonus-malus” clause provides a $110 million reduction if certain operational milestones are not met.
By folding Globalstar’s fleet, its spectrum, and its operational know-how into its own Amazon Leo network (formerly Project Kuiper), the Seattle company isn’t simply adding assets to its balance sheet: it is building a highway to smartphones around the world.
The Direct-to-Device: The New El Dorado
Why such appetite? The answer lies in three letters: D2D (Direct-to-Device). Until now, Amazon’s Leo network was primarily aimed at fixed internet via satellite dishes. With Globalstar, Amazon scales to a different dimension. The goal is to enable future Leo satellites to communicate directly with standard smartphones, without any intermediate hardware.
By taking control of Globalstar’s global L- and S-band frequencies, Amazon bypasses the FCC’s regulatory timelines and relies on an already deployed infrastructure, including more than 20 ground stations. By 2028, Amazon promises mobile connectivity (voice, text, data) that will surpass legacy systems, capable of handling hundreds of millions of connection points, from the most remote white spaces to the critical needs of governments and the Internet of Things.
The Love Triangle: Amazon, Globalstar, and Apple
This is arguably the juiciest facet of the deal. Globalstar is the current provider for Apple’s satellite emergency services on the iPhone. Had Apple owned the operator, it could have created major friction with the brand.
That will not be the case. A tripartite agreement has been sealed: Amazon Leo will take over powering the safety features of iPhones (14 and later) and the Apple Watch Ultra. “Our users will thus continue to have access to the essential satellite features they rely on (…) to stay safe and connected even off the grid,” said Greg Joswiak, Apple’s head of marketing.
Behind the rhetoric about bridging the digital divide and resilience in the face of disasters, the battle against Elon Musk’s Starlink (SpaceX) is more intense than ever. By combining Amazon’s logistics muscle with Apple’s ecosystem, the Leo network aims to establish itself as the global standard for satellite telecommunications.
