Amazon keeps reaching for the skies, literally. The commerce giant is acquiring satellite service provider Globalstar to enhance Leo -- its own satellite operation -- when it eventually provides direct-to-device service.
In the deal, reportedly valued at $11.6 billion, Amazon will get Globalstar's satellite operations, infrastructure and assets. Globalstar, based in Louisiana, has 24 satellites and plans to expand to 32 later this year, according to its website. The company provides "critical and emergency communications to customers around the world," Tuesday's announcement said.
Amazon and Globalstar expect the transaction to be completed in 2027, pending regulatory approval. Â
The transaction also involves Apple. Globalstar provides emergency satellite connectivity for iPhones from the iPhone 14 and up, as well as the Apple Watch Ultra 3, for texting emergency services, requesting roadside assistance, sharing locations and messaging friends and families during natural disasters. Apple bought a 20% stake in Globalstar in November 2024.
Amazon said in Tuesday's announcement that Leo would "power satellite services for iPhone and Apple Watch, including Emergency SOS via satellite."
Amazon Leo -- the "Leo" stands for "low Earth orbit," which is where its satellites are positioned in space -- is trying to become a major competitor to Starlink, the global satellite service leader owned by Elon Musk's SpaceX. Starlink has more than 10,000 satellites in orbit, providing connectivity to smartphones, devices, vehicles and appliances as an alternative to cellphone towers.
Formerly known as Project Kuiper, Leo aims to start providing satellite connectivity services in early 2028, but there have been hiccups. Amazon CEO Andy Jassy told shareholders last week that Leo would not begin providing Wi-Fi service to governments, airlines and other businesses until mid-2026. One of the issues is that Amazon must have 1,600 satellites in orbit by July, per a Federal Communications Commission deadline, but it currently has only 250.
Amazon asked the FCC for an extension on the mandate, but the agency has not ruled yet.
Delta Air Lines and JetBlue have deals with Amazon to use Leo for in-flight connectivity for passengers in the future.
Panos Panay, senior vice president of devices and services at Amazon, said Tuesday's deal with Globalstar will help deliver internet to "billions of customers" who are "beyond the reach of existing networks."
Amazon said that Leo, whenever it does begin delivering satellite service, "will offer substantially higher spectrum use and efficiency than legacy direct-to-cell systems."