Amazon Challenges Musk's Starlink With $11.5bn Globalstar Deal — And It Has An iPhone Connection

Amazon announced Tuesday it will acquire Globalstar, the satellite operator behind Apple's Emergency SOS feature, for $11.57 billion (£8.75 billion) in what amounts to its most aggressive move yet against Elon Musk's Starlink, per CNBC.

Under the deal, Globalstar shareholders will receive $90 (£68) per share in cash or Amazon stock. The price represents a roughly 117 per cent premium over the company's recent trading levels, before reports of a potential sale first surfaced.

But this is not just a satellite play. Alongside the acquisition, Amazon and Apple have signed a separate agreement for Amazon Leo, the company's satellite broadband arm, formerly known as Project Kuiper, to power satellite connectivity on current and future iPhone and Apple Watch models. That includes Emergency SOS, messaging, Find My location sharing, and roadside assistance.

Apple reportedly invested roughly $1.5 billion (£1.13 billion) in Globalstar in 2024, taking a 20 per cent stake in the process. With Amazon now set to absorb Globalstar entirely, the iPhone maker's satellite roadmap is effectively tethered to a Jeff Bezos-backed company.

'By combining Globalstar's proven expertise and strong foundation with Amazon's customer-obsession and innovation, customers can expect faster, more reliable service in more places,' Panos Panay, Amazon's senior vice president of devices and services, said in a statement.

Amazon Leo Still Trails Starlink by Thousands of Satellites

The gap between Amazon and Musk remains vast. Starlink operates more than 10,000 satellites and serves upwards of nine million users across roughly 150 countries. Amazon Leo, by contrast, has just over 200 satellites in orbit and has yet to launch commercial service.

Amazon plans to deploy around 3,200 satellites in low Earth orbit by 2029. A regulatory deadline set by the Federal Communications Commission requires roughly half of that fleet - about 1,600 units - to be in place by July this year, a target Amazon has already asked to extend.

Globalstar brings about two dozen operational satellites and agreements for more than 50 new ones. It is a modest addition in sheer numbers. What matters more is the Louisiana-based company's spectrum licences, particularly its exclusive access to Band 53 - a sliver of midband spectrum optimised for direct-to-device communication that could be difficult to replicate through the licensing process quickly.

Amazon told GeekWire that it valued the transaction at approximately $10.8 billion (£8.17 billion) as of 9 April, when the exchange ratio was fixed. The final figure will fluctuate with Amazon's share price until closing, which is expected in 2027 pending regulatory approval.

What the Globalstar Deal Means for iPhone Satellite Features

For iPhone owners, the practical effect may take time to show. Apple's Emergency SOS via satellite, available on iPhone 14 and later models, currently runs on Globalstar's existing constellation. That will not change overnight. But the long-term plan is for Amazon Leo's expanding network to influence how satellite connectivity features develop across Apple devices, potentially extending what iPhones can do beyond cellular range.

Amazon Leo also plans to deploy its own direct-to-device system from 2028, designed to work alongside its broadband infrastructure. The company has said it aims to build a network capable of supporting hundreds of millions of customer endpoints globally.

The deal is Amazon's second-largest acquisition in its history. CEO Andy Jassy had talked up Amazon Leo's customer roster just days before the announcement, citing Delta Airlines, AT&T, Vodafone, NASA, and Australia's National Broadband Network as clients. A day before the Globalstar news, Amazon Leo also unveiled an aviation antenna capable of delivering gigabit download speeds for commercial airlines.

Globalstar shares climbed more than 9 per cent in premarket trading on Tuesday. Amazon stock rose about 1 per cent.