Amazon Challenges Starlink with $11.6 Billion Purchase of Satellite Provider Globalstar
Seattle, Tuesday, 14 April 2026.
Amazon’s $11.6 billion acquisition of Globalstar accelerates its space internet ambitions. This strategic move directly challenges Elon Musk’s Starlink while maintaining crucial emergency connection services for Apple devices.
Structuring the Mega-Deal
On Monday, April 13, 2026, Amazon.com Inc. (AMZN) and Globalstar Inc. (GSAT) formalized a definitive merger agreement, valuing the satellite operator at approximately $11.57 billion [1][2][3]. Amazon is offering Globalstar shareholders $90.00 per share, representing a 23.5% premium over the stock’s closing price on the preceding Monday [4]. Under the terms of the agreement, shareholders may elect to receive this consideration either in cash or as 0.3210 shares of Amazon common stock, with the stock value capped at $90.00 per share [1][6]. To maintain liquidity and structure, the cash election is strictly capped at 40% of the total outstanding Globalstar shares, meaning any excess cash requests will automatically convert to stock consideration [1][6].
Bridging the Connectivity Gap
The core technological asset driving this acquisition is Globalstar’s direct-to-device (D2D) capability and its licensed Band 53/n53 radio frequency spectrum [6]. By integrating Globalstar’s established infrastructure with its own low Earth orbit (LEO) broadband system, dubbed Amazon Leo, Amazon plans to deploy a next-generation D2D satellite system beginning in 2028 [1][6]. Low Earth orbit satellites typically operate at altitudes between 160 and 2,000 kilometers, allowing for lower latency communications compared to traditional geostationary satellites [GPT]. This new system is designed to provide voice, data, and messaging services directly to consumer devices, creating critical fallback capabilities during terrestrial network failures and reaching billions of individuals operating outside traditional cellular coverage [1].
The Orbital Space Race
Amazon’s multibillion-dollar outlay is a direct countermeasure against SpaceX’s Starlink, which currently dominates the commercial satellite internet sector. As of April 2026, Starlink boasts a formidable constellation of over 10,000 satellites in orbit, serving more than nine million users globally [2][3]. Furthermore, Starlink secured federal authorization in January 2026 to deploy an additional 7,500 satellites [3]. In contrast, Amazon has launched over 240 satellites since April 2025 through partnerships with aerospace firms, including SpaceX and United Launch Alliance [3]. Amazon is racing to deploy an initial network of approximately 3,200 satellites by 2029, with regulatory mandates requiring roughly half of that constellation to be operational by a July 2026 deadline [2]. The company is preparing to roll out its initial satellite internet services later in 2026 [2].
Regulatory Hurdles and Milestones
While the merger is aggressively mapped out