Amazon’s $11.57 billion Globalstar deal signals a major challenge to Musk's Starlink-Will this deal impact Starlink's dominance?

Amazon has made one of its boldest moves yet in the global space and telecom race, signing an $11.57 billion deal to acquire satellite firm Globalstar. The deal marks a major push to expand Amazon’s low-Earth orbit connectivity ambitions and directly challenge Elon Musk’s Starlink, which currently dominates the satellite internet market.

With this acquisition, Amazon is not only strengthening its satellite network but also expanding services that could directly impact consumers, businesses, government agencies, and Apple device users worldwide. More than just a corporate deal, this agreement is being viewed as a pivotal step in expanding direct-to-device connectivity, improving emergency communications, and closing coverage gaps for customers worldwide.

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Why does this deal matter so much?

At its core, the transaction focuses on innovation, competition, and customer impact, particularly for people living, traveling, or working beyond the reach of traditional cellular networks. The move comes as Amazon continues building out Amazon Leo, its low-Earth orbit satellite network, which is expected to support broadband and direct-to-device communication services.

While Amazon currently operates more than 200 satellites, it is working toward deploying about 3,200 satellites by 2029, with nearly half required before the July 2026 regulatory deadline. By comparison, Starlink remains the dominant player, with around 10,000 satellites in orbit and more than nine million users globally, as per a report by Reuters.

The biggest significance lies in how much faster this accelerates Amazon’s long-term connectivity plans. The acquisition enables Amazon Leo to add direct-to-device (D2D) services, allowing customers to remain connected even when outside traditional network coverage zones.

“There are billions of customers out there living, travelling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” said Panos Panay, Senior Vice President of Devices & Services, Amazon.

Rather than relying only on terrestrial towers, Amazon is building a system designed to provide connectivity in remote areas, disaster-hit zones, maritime routes, and underserved regions.

The acquisition also includes Globalstar’s existing satellite operations, infrastructure, and spectrum licenses with global authorisations, which significantly strengthen Amazon’s technical foundation.

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How will customers benefit?

This is where the impact becomes immediate and meaningful. Amazon and Apple have also signed a parallel agreement to continue supporting satellite-based safety features for iPhone and Apple Watch users, including Emergency SOS via satellite and Find My, as per a report by Reuters and Amazon News.

This means Apple users are likely to continue receiving reliable emergency communication support even in areas with no standard network access.

"By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places—keeping them connected to the people and things that matter most. We’re excited to support Apple users through the Leo D2D system, and look forward to working with mobile network partners to help extend coverage to every corner of the planet," Panay stated, as per Amazon News.

The agreement is also expected to support enterprise, government, and industrial customers through stronger voice, data, asset tracking, and mission-critical communication services.

The deal also emphasizes resilience. Direct-to-device satellite connectivity can serve as a backup when ground networks fail during hurricanes, floods, wildfires, and other disasters.

It also supports search-and-rescue, maritime distress communication, remote workforce connectivity, rural broadband extension, and continuity of government operations. This gives the deal importance far beyond simple market competition.

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Can Amazon now compete with Starlink?

This deal clearly strengthens Amazon’s position. While Starlink remains ahead in terms of current scale, Amazon’s move introduces serious long-term competition into the market. The agreement is specifically designed to promote innovation and competition across the satellite and telecommunications sector. By combining Amazon’s scale with Globalstar’s infrastructure and expertise, the company aims to accelerate innovation and expand connectivity options, as per Reuters and Axios.

That means customers may eventually see stronger service quality, better coverage, and greater flexibility.

"We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime,” said Paul Jacobs, CEO, Globalstar. “For more than 30 years, Globalstar has executed on this vision through sustained, long-term investment in technological innovation, operational excellence, and development of globally harmonized spectrum across both satellite and terrestrial applications. The combination with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world," as per Amazon News.

This statement reinforces the long-term vision behind the merger. The agreement also highlights economic impact.

Amazon noted that the expansion will help drive job creation in engineering, manufacturing, and operations, while supporting productivity across enterprises, fleets, supply chains, and IoT applications. This makes the transaction important not only for consumers but for broader industry growth, as per Amazon News.

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What are the key deal terms?

Under the agreement, Globalstar shareholders can choose to receive $90 in cash or 0.3210 shares of Amazon stock per share, with the stock value capped at $90. Cash elections are capped at 40% of total shares, with excess automatically converted into stock consideration on a pro-rata basis.

The total deal value may also be adjusted downward by up to $110 million if certain operational milestones are not met. The transaction is expected to close in 2027, subject to regulatory approvals and satellite deployment milestones.

This deal is a major strategic move centered on customer connectivity, innovation, competition, and long-term satellite growth, all while positioning Amazon as a much stronger rival to Starlink.

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FAQs

Why is this Amazon deal important?
It strengthens Amazon’s satellite network and boosts competition against Starlink.

How does this affect customers?
It could improve emergency connectivity, remote coverage, and mobile access globally.