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Amazon said Tuesday it will acquire satellite firm Globalstar in a roughly $11.5 billion transaction, strengthening its emerging low-Earth-orbit internet ambitions as it seeks to narrow the gap with SpaceX's Starlink network.
Shares of Globalstar jumped more than 9% in premarket trading, extending recent gains amid speculation about a tie-up, while Amazon stock edged higher.
The agreement gives Amazon control of Globalstar's satellites, spectrum rights and ground infrastructure, allowing the companies to integrate existing assets with Amazon's expanding constellation.
Shareholders can opt to receive $90 in cash or 0.3210 Amazon shares for each Globalstar share, the companies said.
Amazon is accelerating plans to deploy thousands of satellites this decade, aiming to deliver high-speed connectivity to consumers, businesses and governments.
The company has already launched more than 200 satellites and expects to introduce commercial service later this year.
Globalstar, known for powering emergency satellite features on smartphones, operates a modest fleet today but is developing an expanded network backed by strategic partners.
Amazon said the combination will support future direct-to-device services, enabling mobile connectivity without traditional towers starting later in the decade.
Starlink currently leads the market with thousands of satellites in orbit and millions of users worldwide, highlighting the scale Amazon must achieve.
The transaction is expected to close next year, subject to regulatory approvals and progress on satellite deployment milestones.
Executives said the deal would improve coverage, resilience and capacity, particularly in remote and underserved regions where terrestrial networks remain limited.
They added that integrating Globalstar's spectrum could accelerate service rollouts and enhance reliability for emergency and enterprise applications.
The companies also signaled continued cooperation with existing partners to maintain satellite safety services used on connected devices.
Amazon faces strict timelines to scale its network, including regulatory targets requiring substantial deployment within the next few years.
Analysts say the acquisition underscores intensifying competition in space-based connectivity, as technology giants invest heavily to capture future demand for global internet access.
Completion depends on execution, integration and sustained investment as Amazon works to translate scale into reliable service and meaningful market share gains over time.
