Amazon has finalized an agreement to purchase Globalstar in a deal worth $11.6 billion.

      Amazon and Apple have entered a separate agreement allowing Amazon Leo to maintain satellite functionalities for the iPhone and Apple Watch. This arrangement provides Amazon with the necessary spectrum, infrastructure, and operational know-how to launch direct-to-device satellite services beginning in 2028, significantly accelerating the development timeline.

      On Tuesday, the companies announced that Amazon has agreed to acquire Globalstar for around $11.6 billion, confirming prior reports of negotiations. According to the agreement, Globalstar shareholders can choose to receive either $90 per share in cash or Amazon stock, with the share value capped at this amount, representing a 23.5% premium over Globalstar's closing price on Monday. Cash elections are limited to 40% of total shares, with any excess automatically converted to stock. The transaction is anticipated to close in 2027, pending regulatory approvals.

      Roughly 58% of Globalstar’s combined voting power has already given their approval for the deal through written consent. Concurrent with the acquisition, Amazon and Apple have formalized an agreement for Amazon Leo and its low Earth orbit satellite network to continue providing satellite features for the iPhone and Apple Watch, like Emergency SOS via satellite, Messages, Find My, and Roadside Assistance.

      Globalstar currently delivers these services for the iPhone 14 and newer models, as well as the Apple Watch Ultra 3, following a partnership supported by Apple's $1.5 billion investment in Globalstar in 2024, which granted Apple about a 20% equity stake and access to 85% of Globalstar’s network capacity.

      The existing agreement with Apple posed a key challenge prior to the announcement: no acquisition could proceed without ensuring the continued functionality of the critical iPhone safety feature. The simultaneous announcement has addressed this issue.

      Essentially, Amazon is acquiring spectrum and time. Globalstar possesses globally harmonized L-band and S-band spectrum licenses—finite radio frequencies that cannot be duplicated merely by launching additional satellites—which are crucial for direct-to-device (D2D) services, enabling mobile phones to connect directly to satellites without specialized hardware.

      Amazon Leo currently has between 180 and 200 satellites in orbit, whereas SpaceX's Starlink operates over 10,000. Amazon has pledged around $17 billion in capital expenditures for building Leo and faced pressure from the FCC regarding a mid-2026 deployment deadline.

      By obtaining Globalstar’s operational capabilities, ground station network that covers 24 global gateways, and licensed spectrum in more than 120 countries, Amazon condenses years of internal development into a single deal. Starting in 2028, Amazon Leo plans to roll out its next-generation D2D satellite system intended to provide voice, data, and messaging directly to mobile devices with significantly more efficient spectrum use than current direct-to-cell systems.

      Globalstar’s existing satellite fleet, alongside its new satellites being produced by MDA Space, will work in tandem with Amazon Leo’s broadband system to create a cohesive network. Amazon claims the complete Leo network will have sufficient capacity to support hundreds of millions of customer endpoints worldwide.

      Having been in operation for over 30 years, Globalstar achieved profitability in 2025 with $273 million in revenue. CEO Paul Jacobs described the deal as a natural conclusion to the company's long-term goal of ensuring connectivity for users anywhere and anytime.

      Greg Joswiak from Apple highlighted the Emergency SOS service's history, noting it has saved lives, including rescuing a scout troop stranded during a winter hike in British Columbia and assisting a woman airlifted to safety in Colorado after her vehicle tumbled down a 250-foot cliff. He also reaffirmed Amazon and Apple’s long-standing collaboration through AWS.