Amazon has reportedly agreed to acquire satellite operator Globalstar to bolster its Project Kuiper broadband initiative and directly challenge SpaceX‘s Starlink. The deal provides Amazon with Globalstar’s two dozen satellites designed for Direct-to-Device connections, accelerating its plan to deploy 3,200 satellites within three years. Globalstar’s stock, which has gained 273% over the past year, climbed further on the news, while Amazon shares rallied as the company commits to aggressive infrastructure spending.
Shares in Amazon rose Tuesday following news it agreed to acquire satellite company Globalstar. This move positions Amazon to directly challenge SpaceX‘s Starlink satellite internet service.
Amazon’s Project Kuiper initiative aims to deploy 3,200 satellites in the next three years, according to a press release. The acquisition of Globalstar is designed to turbocharge that satellite broadband project.
The deal adds Globalstar’s two dozen satellites to Amazon’s existing network of more than 200 units. Tech companies are pouring billions into the satellite connectivity market, but matching Starlink’s 10,000-unit network remains a tall order.
Globalstar’s network provides reliable, low-data connections directly to mobile devices. The acquisition will help Amazon deploy this Direct-to-Device service starting from 2028, the companies said.
Amazon had previously signaled aggressive infrastructure ambitions with $200 billion in capital expenditure planned for 2026. Folding Globalstar’s assets into that spending accelerates the Kuiper roadmap considerably.
Globalstar‘s stock saw a 273% gain over the past year, making Tuesday’s 10% climb a confirmation of market expectations. The acquisition validates Globalstar’s spectrum and satellite assets at a premium investors anticipated.
Amazon‘s stock is now up 9% year-to-date after struggling early in the year. It rallied 4.8% on Tuesday following the acquisition announcement.
