Amazon.com cemented its entry into the satellite connectivity race by agreeing to purchase Globalstar for a total consideration valued at $11.57 billion. This acquisition pits Amazon’s emerging Leo constellation directly against rivals like Elon Musk’s Starlink, granting Amazon immediate access to critical orbital assets and spectrum.

Globalstar shareholders face an election: take $90 per share in cash or receive 0.3210 shares of Amazon common stock, though the equity option is capped at the $90 cash equivalent. Acquiring Globalstar’s established infrastructure, including mobile satellite services spectrum licenses, secures necessary global authorizations for Amazon Leo’s expansion plans.

Amazon Leo intends to deploy its own direct-to-device satellite system starting in 2028, leveraging Globalstar’s existing capabilities. The combination promises continuous connectivity for enterprise, consumer, and government users across the globe once the transaction closes, expected sometime in 2027.

This strategic move validates the increasing importance of direct-to-device satellite communications for major tech players. Securing these assets now positions Amazon to challenge established players in delivering omnipresent mobile coverage, a major infrastructure undertaking.