Amazon is intensifying its ambitions in the satellite communications sector with plans to purchase satellite company Globalstar for $11.57 billion. This strategic acquisition is positioned as a direct move to rival the global dominance of Starlink, a venture by Elon Musk.
The agreement, announced on Tuesday, is expected to provide Amazon with access to a substantial satellite network in low-Earth orbit, furthering the goals of its Project Kuiper. Amazon's satellite internet strategy has been in development for several years.
According to Amazon, the acquisition aligns with its broader vision for space- based communication services and confirms its intention to deploy an advanced satellite system by the year 2028.
This development places Amazon in direct competition with Starlink, which has experienced rapid growth since its inception in 2019 and currently holds a leading position in the global satellite internet market.
Starlink, operated by SpaceX, boasts over 10,000 active satellites and serves more than 10 million customers worldwide, establishing a considerable lead in the industry.
In contrast, Amazon's Project Kuiper currently has approximately 200 satellites in orbit, indicating the significant expansion required to achieve its objective of building a vast global constellation.
Even Globalstar's existing fleet of around 50 satellites highlights the scale of development Amazon needs to undertake to narrow the gap with its competitor.
The competitive landscape in the satellite sector is intensifying, with other players also emerging. Blue Origin, founded by Amazon's founder Jeff Bezos, is developing its own satellite internet system called TerraWave, aiming to deploy at least 5,400 satellites by 2027 for enterprise clients globally.
Starlink's parent company, SpaceX, is also reportedly preparing for a public offering this year, with projections suggesting a valuation exceeding $1 trillion, further heating up competition within the commercial space industry.
Amazon's chief executive, Andy Jassy, noted that Project Kuiper has already secured partnerships with prominent entities including Delta Air Lines, JetBlue, AT&T;, Vodafone, DIRECTV Latin America, Australia’s National Broadband Network, and NASA, subject to the full deployment of services.
The acquisition encompasses Globalstar's infrastructure, spread across various locations such as facilities in the United States, Ireland, Brazil, France, and California.
Globalstar, established in 1991, currently has a market valuation near $10 billion and offers satellite communication services, including emergency connectivity features integrated into Apple devices.
Apple, which acquired a 20% stake in Globalstar in 2024, continues to utilize the company's services for its emergency SOS satellite feature. Amazon has confirmed that this service will continue uninterrupted under the new ownership.
Amazon has also reached an agreement with Apple to ensure the ongoing functionality of the SOS feature on iPhones and Apple Watches.
The acquisition is pending customary closing conditions and regulatory approvals.
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