Amazon is writing an $11.57 billion check to acquire satellite communications firm Globalstar, marking the e-commerce giant's most aggressive move yet to catch up with Elon Musk's Starlink in the race to blanket the planet with internet coverage from space.
The deal, announced Monday, gives Amazon full ownership of a company that's been struggling financially for years but controls valuable satellite spectrum and orbital slots. More importantly, it accelerates Project Kuiper, Amazon's answer to Starlink that's been years behind schedule and billions over budget.
Here's what Amazon isn't saying in the press release: they're desperate. While Starlink has already launched over 6,000 satellites and serves more than 4 million customers globally, Kuiper has yet to launch its first commercial satellite. Elon Musk didn't just beat Jeff Bezos to space—he lapped him.
The acquisition represents a classic Amazon play: when you can't build fast enough, buy your way to relevance. Globalstar brings 31 operational satellites, ground infrastructure across multiple continents, and existing relationships with enterprise customers. But the real prize is avoiding the regulatory gauntlet of securing new spectrum licenses, a process that can take years.
The competitive dynamics are brutal. Starlink generated an estimated $4.2 billion in revenue last year and is adding roughly 1 million new customers every four months. The service works—I've tested it myself in remote areas where traditional broadband is a joke. Amazon, meanwhile, has spent years in PowerPoint mode, promising to launch thousands of satellites "soon."
Investors should note the timing. This deal comes as Amazon faces mounting pressure to justify the massive capital expenditures on Kuiper, which was originally announced in 2019 with promises of service beginning in 2024. We're now in 2026, and they're still years away from meaningful commercial operations.
The $11.6 billion price tag is steep for a company like Globalstar, which had a market cap of around $3 billion before acquisition rumors started swirling. That's nearly a 4x premium—a clear signal that Amazon is paying for strategic position, not current earnings. Globalstar reported just $240 million in revenue last year and hasn't turned an annual profit since 2019.
