What just happened? Amazon has agreed to purchase longtime satellite network operator Globalstar as part of a deal valued at nearly $11.6 billion. The acquisition will expand the reach of Amazon's budding space-based communications platform, allowing the company to better compete with rivals like SpaceX's Starlink.

Per the agreement, Amazon will take ownership of Globalstar's existing operations including its low Earth orbit satellite network and supporting infrastructure, as well as related assets like mobile satellite service spectrum licenses. Amazon is paying $90 per Globalstar share – available either as cash or in Amazon stock – which values the deal at around $11.6 billion. The latter option works out to 0.3210 shares of Amazon stock for each share of Globalstar.

Amazon said the acquisition will enable them to add direct-to-device service to their existing Leo satellite network. The company is on track to deploy its D2D satellite system starting in 2028, which will afford more advanced voice, data, and messaging services to mobile devices compared with what legacy direct-to-cell systems are capable of. Once complete, Amazon's Leo network will consist of thousands of satellites in low Earth orbit with the capacity to support hundreds of millions of customers around the globe.

Shares of Amazon are up nearly 3.3% on the news as of writing, and Globalstar shares have gained more than 10.5%.

Apple, if you recall, purchased a 20% stake in Globalstar back in 2024 for $1.1 billion. Amazon didn't mention that nugget in its press release, but did say it signed an agreement with the Cupertino-based tech giant to continue to power satellite features on select iPhone and Apple Watch models moving forward.

Just last month, Delta Air Lines inked a deal with Amazon to equip its planes with wireless internet service powered by Leo satellites. That multi-year agreement will initially involve outfitting 500 aircraft with gate-to-gate Wi-Fi service, which will be free to use for Delta SkyMiles members.

Amazon expects the deal to close sometime in 2027, pending customary regulatory approvals and closing conditions.