Amazon has reached an agreement to purchase Globalstar in a deal valued at $11.6 billion.

      Amazon and Apple have entered into a separate agreement that enables Amazon Leo to continue providing satellite features for the iPhone and Apple Watch. This agreement grants Amazon access to the necessary spectrum, infrastructure, and operational expertise to launch direct-to-device satellite services starting in 2028, effectively condensing years of development into one deal.

      On Tuesday, Amazon announced it would acquire Globalstar in a deal valued at approximately $11.6 billion, confirming weeks of prior speculation. According to the agreement, Globalstar shareholders can choose to receive either $90 per share in cash or Amazon stock, capped at the same value, which represents a 23.5% premium over Globalstar’s closing price on Monday. Cash elections will be limited to 40% of the total shares, with any excess automatically converted to stock. The transaction is anticipated to close in 2027, pending regulatory approvals.

      About 58% of Globalstar’s voting power has already endorsed the deal through written consent. In addition to the acquisition, Amazon and Apple have signed a separate agreement for Amazon Leo, which will continue to support satellite features on the iPhone and Apple Watch, such as Emergency SOS via satellite, Messages, Find My, and Roadside Assistance.

      Currently, Globalstar provides these services for iPhone 14 models and later, as well as the Apple Watch Ultra 3, under a collaboration that included Apple’s $1.5 billion investment in Globalstar in 2024, granting Apple roughly a 20% equity stake and the rights to 85% of Globalstar’s network capacity.

      The complexity surrounding the Apple agreement was a key issue before the announcement, as no acquisition could move forward without addressing the functionality of critical safety features on the iPhone. The dual announcement resolves this matter.

      What Amazon is essentially acquiring is spectrum and time. Globalstar possesses internationally recognized L-band and S-band spectrum licenses, which are unique radio frequencies essential for direct-to-device (D2D) services, allowing mobile phones to connect directly to satellites without additional hardware.

      Amazon Leo currently operates approximately 180 to 200 satellites in orbit, while SpaceX’s Starlink has over 10,000. Amazon has pledged around $17 billion in capital to develop Leo and is under FCC pressure to meet a mid-2026 deployment deadline.

      By acquiring Globalstar’s operational infrastructure, ground station network spanning 24 global gateways, and licensed spectrum in over 120 countries, Amazon effectively condenses years of internal development into one transaction.

      Starting in 2028, Amazon Leo plans to launch its next-generation D2D satellite system, which aims to provide voice, data, and messaging directly to mobile phones and cellular devices with significantly improved spectrum efficiency compared to existing systems.

      Globalstar's existing satellite fleet, along with new satellites being produced by MDA Space, will work in conjunction with Amazon Leo’s broadband system to create a cohesive network. Amazon asserts that the complete Leo network will have sufficient capacity to accommodate hundreds of millions of customer endpoints worldwide.

      Globalstar, which has been in operation for over three decades, became profitable in 2025 with $273 million in revenue. Its CEO, Paul Jacobs, characterized the deal as a natural progression of the company’s long-term vision for connecting users anytime, anywhere.

      Apple’s Greg Joswiak highlighted the success of the Emergency SOS service, which has saved lives, including a scout troop stranded during winter in British Columbia and a woman rescued after her car went off a 250-foot cliff in Colorado, confirming that Amazon and Apple have a long-standing relationship through AWS.