FCC approves Amazon Leo's $11.5 billion purchase of satellite operator Globalstar

The US Federal Communications Commission (FCC) on Oct 27 approved the transfer of Globalstar's licenses to Amazon, clearing a US regulatory step in Amazon's purchase of the satellite operator for about $11.5 billion. Globalstar will become a wholly owned subsidiary run alongside Amazon Leo, Amazon's satellite internet business, and will keep its corporate name.

The order found the deal would extend data coverage to unserved and underserved areas and strengthen emergency communications, and that no material public-interest harm was likely. The FCC denied the only petition against the deal, filed by Yippy, a former Globalstar partner in a contract dispute with the company.

The terms

• Globalstar shareholders receive either $90 in cash or 0.3210 Amazon shares for each share, with the stock option's value capped at $90.
• Cash elections are limited to 40% of all shares, and any excess converts to Amazon stock.
• The price can be cut by up to $110 million if Globalstar misses certain operating milestones.
• Holders of about 58% of Globalstar's voting power have already approved the deal.

What Amazon gets

Amazon Leo takes over Globalstar's satellite network and about 25 megahertz of internationally harmonized mobile-satellite spectrum, which it plans to use for direct-to-device service, meaning satellite links straight to ordinary phones. Globalstar serves more than 780,000 devices in over 120 countries for emergency messaging, asset tracking, and maritime and aviation links, according to the order.

Earlier in October the FCC authorized Globalstar's next-generation C-3 system of 48 satellites plus six spares, which MDA Space is building. The order says Amazon Leo may use that authorization after the deal closes. Amazon also gets XCOM RAN, Globalstar's private 5G network business, whose future inside Amazon has not been decided.

Amazon has committed more than $10 billion to Amazon Leo, has launched over 300 satellites since April 2025 and expects to start commercial service by the end of 2026, the order says. A separate Amazon application for a direct-to-device constellation of up to 5,105 satellites is still pending at the FCC.

Who is exposed

Globalstar provides the satellite texting and Emergency SOS features on iPhone 14 and newer models. Amazon and Apple agreed in April that Amazon Leo will power satellite services for iPhone and Apple Watch after the deal.

Apple holds a 20% equity and voting interest in Globalstar's main license-holding unit, and an FCC filing in May showed Amazon plans to buy that stake as part of the transaction.

The deal puts Amazon into a direct-to-device market led by SpaceX's Starlink. The FCC authorized a 15,000-satellite SpaceX direct-to-device constellation earlier in October and a 248-satellite system for AST SpaceMobile in April.

What comes next

• Amazon reports third-quarter results on Oct 29 after US markets close.
• The FCC votes on Oct 29 on two items that would add spectrum usable for direct-to-device service, including a proposed auction of the 1675–1695 MHz and 2020–2025 MHz bands.
• Closing still requires other regulatory approvals and Globalstar replacement-satellite milestones, and Amazon has given no update to the 2027 closing it expected when the deal was announced.