US agency approves Amazon Leo's $11.5 billion acquisition of Globalstar

The Federal Communications Commission (FCC) approved Amazon's $11.5 billion acquisition of Globalstar on Tuesday, as the retail giant seeks to establish a satellite-based communications network to challenge Elon Musk's SpaceX Starlink unit. Amazon has already launched over 300 satellites since April 2025, with plans to deploy approximately 3,200 satellites in low Earth orbit by 2029.

Through this deal, Amazon adds Globalstar's two dozen satellites to its existing network of over 200, along with its mobile-satellite spectrum.

The FCC stated that Amazon's investment of over $10 billion in Leo will enhance the company's entry into the direct-to-device market and enable the satellite operator to provide fixed and mobile services. FCC Chair Brendan Carr emphasized that the acquisition will bolster Amazon Leo's ability to deliver fast, next-generation satellite broadband services, foster competition, and ensure that communities nationwide remain connected.

Direct-to-device satellite technology allows smartphones and other devices to connect directly to satellites, a technology that Amazon is leveraging in its efforts to gain a foothold in the lucrative market for satellite-based connectivity, which is being intensely pursued by other tech companies. The FCC will vote on Thursday to advance a new auction of wireless spectrum aimed at boosting direct-to-device services.

Globalstar, which currently offers satellite-based safety features such as Emergency SOS and Find My for Apple's iPhone and Apple Watch users, has committed to expanding its satellite network. Apple previously invested $1.5 billion in Globalstar in 2024 to support the expansion of its iPhone communication services, acquiring a 20% stake in the company.

Apple accounted for around 63% of Globalstar's revenue last year, and Amazon plans to acquire Apple's stake as part of the acquisition. Globalstar is also developing a new network that could eventually consist of 54 satellites, including a few backups, in addition to the two dozen already in orbit.