FCC Approves Amazon's Acquisition of Satellite Operator Globalstar
By Rachel Jewett · · TexaHub · Space & Aerospace
The FCC approved Amazon's purchase of Globalstar, a deal SpaceNews valued at around $11.5 billion. Globalstar will become a wholly owned subsidiary affiliated with Amazon Leo as Amazon moves into direct-to-device services.
Regulatory Approval
The U.S. Federal Communications Commission approved Amazon's acquisition of Globalstar on Oct. 27, clearing a key regulatory hurdle for Amazon's entry into the direct-to-device connectivity market. SpaceNews put the deal's value at around $11.5 billion, while Via Satellite reported it at $10.8 billion. [1] [2]
Globalstar will become a wholly owned Amazon subsidiary and an affiliate of Kuiper Systems LLC, which operates Amazon Leo, while keeping its corporate identity. The FCC found little head-to-head competition between Globalstar's mobile satellite services for IoT, messaging and tracking and Amazon Leo's fixed broadband, and dismissed the only filing against the deal, from Yippy, which is in a contract dispute with Globalstar in arbitration. Amazon has not said when the deal will close; it was originally expected to close in 2027. [2]
FCC chair Brendan Carr called the approval a "significant step towards supercharging next-generation connectivity." Amazon Leo has deployed nearly 400 satellites and plans to deploy its own direct-to-device satellites by 2028. [3]
Sources
[1] FCC clears Globalstar's $11.5 billion sale to Amazon — SpaceNews
[2] Amazon Secures FCC Approval for Globalstar Acquisition — Via Satellite
[3] FCC approves Amazon's acquisition of Globalstar — Silicon Republic