Amazon enters $11.6 billion merger with Globalstar to challenge SpaceX in satellite-to-phone race

Amazon merges with Globalstar to bring D2D services to its Leo network. The $11.6B deal secures Apple’s satellite link and challenges SpaceX’s Starlink dominance.

By: AXL Media

Published: Apr 17, 2026, 5:50 AM EDT

Source: Information for this report was sourced from Computerworld

Strategic Consolidation in the Low Earth Orbit Sector

Amazon’s acquisition of Globalstar represents a major consolidation in the rapidly evolving space-based communications market. Under the terms of the merger announced on April 14, 2026, Amazon will take control of Globalstar’s entire operational infrastructure, including its fleet of 24 satellites and, most critically, its licensed L-band and S-band spectrum. According to industry analysts, these frequency bands are essential for direct-to-device connectivity, as they allow standard smartphones to communicate with satellites without requiring hardware modifications. By securing these assets, Amazon expects to accelerate its deployment timeline for mobile voice and data services by several years.

The Multi-Billion Dollar Partnership with Apple

A pivotal component of the transaction is the formalized partnership between Amazon and Apple. Prior to this merger, Apple held a 20% equity stake in Globalstar following a $1.5 billion investment in 2024. According to the merger agreement, Amazon will now oversee the satellite backbone that powers Apple’s Emergency SOS, satellite messaging, and Find My features. Roger Entner, founder of Recon Analytics, noted that this acquisition effectively grants Amazon a foundational relationship with one of the world's largest consumer electronics ecosystems, ensuring that future iPhones and Apple Watches remain tethered to the Amazon Leo network.

Competitive Response to SpaceX and Starlink

The merger is widely viewed as a direct counter-maneuver against Elon Musk’s SpaceX, which has dominated the satellite broadband market through its Starlink constellation. While Starlink is already profitable and expanding its own mobile service trials, Amazon’s move into the D2D space provides it with a licensed spectrum advantage that SpaceX has historically struggled to secure through traditional regulatory channels. According to Scott Bickley of Info-Tech Research Group, while Amazon still lacks the vertical integration and internal launch capabilities of SpaceX, the acquisition of an established operator like Globalstar provides the regulatory experience and infrastructure necessary to close the competitive gap.