Amazon Leo secures FCC approval for $11.5bn Globalstar takeover

Amazon Leo has received official approval from the Federal Communications Commission (FCC) to acquire Globalstar for $11.5 billion. This strategic move is intended to significantly bolster Amazon's satellite communication capabilities, positioning the company as a major competitor to Elon Musk’s SpaceX and its Starlink internet service. The approval marks a pivotal step in Amazon's expansion into the orbital technology sector as it seeks to provide global high-speed connectivity.

Under the terms of the deal, Amazon Leo gains access to Globalstar’s existing fleet of satellites and its valuable mobile-satellite spectrum. Amazon has already launched nearly 400 satellites as part of its broader initiative to deploy a constellation of thousands by 2029. FCC Chair Brendan Carr emphasized that the agreement is expected to foster healthy competition in the telecommunications market and ensure that communities across the United States and beyond remain connected through reliable satellite infrastructure.

In a significant shift in corporate partnerships, Amazon plans to acquire a 20% stake in Globalstar that was previously held by Apple. This transition is particularly notable because Apple has historically been a major contributor to Globalstar's revenue stream. By acquiring this stake and the wider company, Amazon solidifies its control over the technical infrastructure needed for its future commercial offerings while potentially disrupting existing mobile-satellite service arrangements.

Amazon anticipates launching its commercial satellite services by the end of 2026. As the company scales its operations, the integration of Globalstar’s assets will play a critical role in providing low-latency, high-speed internet to underserved regions. The acquisition underscores the growing race among global technology giants to dominate the burgeoning satellite internet market, promising greater choice for consumers and businesses requiring remote connectivity.