Amazon buys satellite company Globalstar for 11.57 billion dollars and aims to challenge Starlink

Published: 2026-04-15 10:58:13 ET GSAT

Published on 04/15/2026 at 10:58 am EDT

Key takeaways

With Amazon’s 11.57 billion dollar (9.82 billion euro) purchase of satellite company Globalstar, it aims to take on SpaceX’s Starlink head‑on in the rapidly expanding satellite internet market. According to space analyst Chris Quilty, this move paves the way for a monumental rivalry between two tech giants. SpaceX had previously shown interest in acquiring Globalstar’s spectrum, which likely explains why Amazon paid such a high price.

Globalstar’s valuable spectrum

Globalstar, currently valued at around 10 billion dollars (8.6 billion euro), owns valuable radio frequencies that enable direct mobile services to devices without relying on traditional infrastructure such as masts or antennas. Amazon’s satellite venture, initially known as Project Kuiper and later renamed Amazon Leo, has faced several setbacks during development, including a shortage of rockets and delays in production.

Despite these challenges, the programme obtained its operating licence from the Federal Communications Commission in 2020 and reached a crucial milestone with the successful launch of prototype satellites in October 2023.

Amazon’s biggest investment to date

The acquisition of Globalstar is Amazon’s largest investment so far in expanding its satellite operations and represents the tech giant’s second‑largest takeover after the purchase of Whole Foods for 13.7 billion dollars (11.6 billion euro) in 2017. The deal reinforces the ongoing rivalry between tech billionaires vying for supremacy in the space sector.

SpaceX in the lead

Elon Musk’s SpaceX, with its ambitious goal of colonising Mars and providing global satellite internet via Starlink, is a frontrunner in this race. Thanks to SpaceX’s success in drastically cutting launch costs, the company has carried out more than 600 launches since 2008, while Jeff Bezos’s Blue Origin managed to achieve its first successful orbital launch only in January 2025.

That lead is even more evident in the satellite internet market: Starlink already has more than 10 million customers in over 100 countries, while Amazon Leo is not expected to launch until mid‑2026. This rivalry is unfolding in the midst of the rapid growth of the space economy, which is expected to exceed 1.8 trillion dollars (1.5 trillion euro) by 2035, driven mainly by commercial sectors such as satellite technology, space tourism and data centres. (fc)

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