Amazon has agreed to acquire satellite communications company Globalstar in a deal valued at around $11.57 billion. With this move, the e-commerce giant aims to expand into global satellite-based internet and direct-to-device connectivity services. The acquisition comes at a time when competition in low-Earth-orbit satellite networks is intensifying, with major technology companies like Elon Musk’s Starlink investing heavily to build global communication infrastructure in space.
The deal structure allows Globalstar shareholders to choose between receiving $90 in cash per share or 0.3210 shares of Amazon common stock for each Globalstar share they own. However, the value of the stock option is capped at $90 per share, ensuring both options remain balanced in value. The companies have also introduced a proration system, which limits total cash payments to a maximum of 40% of all Globalstar shares. If more shareholders choose cash than allowed under this limit, the extra portion is automatically converted into Amazon stock on a proportional basis.
Also, the agreement includes a performance-based adjustment clause. The total deal value can be reduced by up to $110 million if Globalstar fails to meet certain operational milestones, including requirements linked to its satellite replacement and deployment plans under its HIBLEO-4 program. The deal has already received strong internal support, with shareholders representing around 58% of Globalstar’s total voting power approving the transaction through written consent. The merger is expected to close in 2027, although completion depends on regulatory approvals and fulfilment of operational requirements by Globalstar.
Notably, Amazon’s satellite ambitions began in 2019 when Jeff Bezos launched the company’s space-based internet initiative under the name Project Kuiper, which has since been rebranded as Amazon Leo. The company’s long-term plan is to build a large constellation of satellites in low Earth orbit to deliver broadband internet access across the world, especially in rural and underserved regions. The company aims to deploy around 3,200 satellites by 2029, with about half of that network required to be in orbit by a regulatory deadline in July 2026.
At present, Amazon operates a network of more than 200 satellites, and it is preparing to launch its initial satellite internet services later this year. The timing of the latest move becomes particularly notable as the sector is currently dominated by Elon Musk’s Starlink, which operates a massive network of more than 10,000 satellites and serves over 9 million users globally.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
