FCC Approves Amazon’s $11.57 Billion Globalstar Acquisition

FCC Approves Amazon’s $11.57 Billion Globalstar Acquisition

On 27 October 2026, the US Federal Communications Commission (FCC) approved Amazon’s acquisition of Globalstar in a transaction valued at approximately $11.57 billion. The FCC Space Bureau completed its review of the deal, which will bring Globalstar’s mobile-satellite spectrum and infrastructure into Amazon Leo, Amazon’s satellite communications business, formerly known as Project Kuiper.

Satellite Connectivity and Spectrum

Direct-to-device connectivity allows smartphones and other devices to communicate directly with satellites. Globalstar operates mobile-satellite services and has about two dozen satellites; the acquisition adds these satellites and its spectrum to Amazon Leo’s network. The FCC said the transaction would enable Amazon Leo to offer fixed and mobile satellite services and enter the direct-to-device market.

Amazon Leo had launched more than 300 satellites since April 2025 and planned a constellation of about 3,200 satellites in Low Earth orbit by 2029. Amazon had committed more than $10 billion to the project and planned to begin commercial satellite services by the end of 2026. The satellite market also includes SpaceX’s Starlink, whose network has more than 11,000 satellites.

Transaction Terms and Apple Services

Globalstar shareholders can elect to receive $90 per share in cash or 0.321 shares of Amazon common stock, subject to proration for cash elections. The transaction is expected to close in 2027, subject to completion of the remaining requirements.

Globalstar supports Apple satellite features, including Emergency SOS and Find My on iPhone and Apple Watch. Amazon has agreed with Apple to continue providing these services and plans to acquire Apple’s 20% equity stake in Globalstar. Apple invested about $1.5 billion in Globalstar in 2024 to expand satellite communications for its devices.

FCC Review and Communications Uses

The FCC rejected a petition from Yippy seeking to block or impose conditions on the transaction in connection with an alleged contract dispute with Globalstar. The FCC identified improved coverage in unserved and underserved areas, stronger emergency communications and increased use of mobile-satellite spectrum as expected public benefits. The acquisition is Amazon’s second-largest after its 2017 purchase of Whole Foods.

Important Facts for Exams

  • The Federal Communications Commission is the US agency that regulates interstate and international communications by radio, television, wire, satellite and cable.
  • Low Earth orbit is the region of space extending from Earth’s surface to an altitude of about 2,000 kilometres.
  • Emergency SOS is an Apple satellite safety feature available on supported iPhone models in areas without cellular or Wi-Fi coverage.
  • Starlink is SpaceX’s satellite internet constellation operating in Low Earth orbit.

Globalstar’s mobile-satellite spectrum and satellite infrastructure are included in the approved acquisition. Amazon has agreed to maintain the satellite safety services Globalstar provides for Apple devices.

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