Amazon struck an $11.6 billion agreement to absorb satellite operator Globalstar, a massive transaction designed to accelerate its low Earth orbit ambitions. This move directly positions the Seattle-based tech giant to compete head-to-head with Elon Musk’s established Starlink network, which currently boasts over 10,000 active satellites.

Acquiring Globalstar grants Amazon immediate access to necessary radiowave spectrum, clearing the path for future direct-to-device mobile communications, similar to services already offered by competitors. Panos Panay stated the combination of Globalstar’s foundation and Amazon’s customer focus will yield quicker, more dependable service availability across wider geographies.

Complicating the transaction was Apple’s existing 20 percent stake in Globalstar; Amazon agreed to continue supporting Apple's iPhone and Watch emergency SOS features using its new LEO asset. Amazon’s stock offering valued Globalstar shares at $90 each, or at 0.32 Amazon shares, pending regulatory closing next year.

This purchase is one of Amazon's largest ever, surpassing the MGM acquisition but falling short of Whole Foods, demonstrating serious capital allocation toward connectivity infrastructure. The deal solidifies Amazon’s commitment to its Project Kuiper build-out, despite recent capacity shortages hampering its deployment schedule.