Amazon.com Inc (NASDAQ:AMZN) has agreed to acquire Globalstar Inc (NASDAQ:GSAT) in a deal aimed at expanding its satellite telecommunications connectivity, including powering emergency features on Apple Inc (NASDAQ:AAPL) iPhones and Apple Watches.
The acquisition will allow Amazon’s low Earth orbit network, Amazon Leo, to add services that connect directly to mobile phones, enabling voice, text and data coverage beyond traditional cellular networks.
Amazon said the move would combine Globalstar’s satellite infrastructure and spectrum licences with its own network, creating a platform capable of supporting hundreds of millions of devices globally.
The companies also announced a separate agreement with Apple, which is both a customer of Globalstar and a shareholder.
Apple has a 20% equity stake in Globalstar and uses its services for emergency SOS on certain iPhones and Apple Watch models.
Amazon Leo will now power satellite features on iPhone and Apple Watch devices, including emergency messaging and roadside assistance.
Panos Panay, senior vice president at Amazon, said there were "billions of customers" beyond the reach of existing networks, and Amazon Leo was started to "help bridge that divide".
Globalstar chief executive Paul Jacobs added that low Earth orbit satellites offer “the most effective path to truly connect users and devices anywhere and anytime”.
Amazon plans to roll out its next-generation direct-to-device system from 2028, targeting faster speeds and broader coverage.
The deal is expected to be completed in 2027, subject to regulatory approvals. Investors in Globalstar are offered a choice of either stock or cash, with the cash component capped at 40%.
Earlier this month, Amazon was in talks to acquire Globalstar, according to a Financial Times report.
Market analyst Dan Coatsworth at AJ Bell said the acquisition "means it is snapping even harder at SpaceX’s heels".
He said that while Globalstar lacks the scale of SpaceX, it is "now in a stronger position to play catch-up".
The cash and shares deal suggests Apple could be paid partially in Amazon shares, wjhich Coatsworth said raised questions about where else the two companies might want to work together.
"What’s certain is that the space race is heating up and big money is expected to be ploughed into this industry over the coming years. Amazon’s involvement will only fuel more investor interest, and it could spur SpaceX into upping its game and making sure it maintains the massive lead it currently has over rivals."
Shares in Globalstart jumped 9.3% to $79.66, while Amazon was up 2.5% to $246.06.