Amazon Acquires Globalstar to Rival Starlink? SpaceX IPO Nears, Satellite Internet Sector Sees Valuation Reshuffle

TradingKey - The satellite internet sector is heating up rapidly. Amazon ( AMZN )'s acquisition of Globalstar, combined with expectations of an upcoming SpaceX IPO, is more than just two corporate news items; it signals that the entire industry is entering a new round of valuation recalibration.

On Tuesday (April 15), Amazon announced it will acquire satellite operator Globalstar at a price of $90 per share, with a total transaction value of approximately $11.57 billion.

According to Globalstar's announcement, the deal has been finalized in the form of a definitive merger agreement. Amazon will leverage Globalstar's satellites, spectrum, and operational expertise to further extend its Amazon Leo low-earth orbit satellite network into Direct-to-Device (D2D) services, allowing smartphones and wearable devices to connect directly to satellites without being fully dependent on ground stations.

The transaction is expected to close next year, subject to regulatory approvals and the achievement of certain deployment milestones.

The significance of this deal goes far beyond 'Amazon buying a satellite company.' What Amazon is acquiring directly is not just Globalstar's satellites, but more importantly, its critical spectrum and expertise in D2D scenarios.

As Reuters pointed out, Amazon's current network already has more than 200 satellites, and the company plans to deploy approximately 3,200 satellites by 2029, with hopes to begin providing D2D services in 2028. In other words, Amazon is not just filling in a puzzle piece, but is building an infrastructure capable of competing head-to-head with Starlink.

How did the market react?

Following the announcement, the market reaction was immediate.

Market data showed Globalstar shares surged 9.63%, Amazon climbed 3.81%, and MDA Space, which is building Globalstar’s next-generation constellation, rose 7.12%. This suggests that capital is looking beyond the "acquisition premium" and is repricing the entire satellite communications value chain.

Regarding the deal structure, Globalstar shareholders can choose either $90 per share in cash or Amazon stock.

Data shows this price represents a premium of more than 10% compared to Globalstar’s Tuesday closing price of $79.91.

For an asset like Globalstar, positioned at the intersection of satellite communications, spectrum, and D2D, it is hardly surprising that capital markets are willing to assign it a higher valuation.

What does this transaction mean for Globalstar?

For Globalstar, the most significant shift resulting from this deal is the fundamental change in the nature of its assets.

In the past, the market largely viewed it as a small satellite operator; now, it has been integrated into Amazon's broader LEO strategic roadmap, where its value is no longer derived solely from its current satellite count, but from spectrum, D2D capabilities, terminal partnerships, and future deployment rights.

Furthermore, Amazon has reached an agreement with Apple to continue providing satellite services for the iPhone and Apple Watch, meaning Globalstar's related operations will not lose their existing ecosystem due to the acquisition, but will instead be integrated into a larger platform.

For investors, the most noteworthy aspect of this merger is not the premium itself, but rather its potential to shift the valuation anchors for other assets in the industry.

If Globalstar can be repriced by Amazon in this manner, the market will begin to re-examine AST SpaceMobile, EchoStar, Iridium, Viasat, and orbital infrastructure companies more broadly.

Amazon’s move effectively signals to the market that satellite internet is no longer just a long-term narrative, but an infrastructure business that can be executed through cash, equity, and asset integration.

Why is this being viewed in conjunction with a SpaceX IPO?

Amazon's deal is noteworthy not just for its scale, but because it is taking place ahead of SpaceX's upcoming IPO.

Reuters confirmed on April 1 that SpaceX has confidentially filed for an IPO; a follow-up report on April 6 stated that SpaceX plans to launch its roadshow in early June and host an event for approximately 1,500 retail investors on June 11, targeting $75 billion in funding with a potential valuation of up to $1.75 trillion.

This means the market will not only need to assess the value of a single satellite company but also reprice the entire "orbital internet" sector.

SpaceX's Starlink currently serves over 9 million users and operates more than 10,000 satellites, demonstrating a clear advantage in scale; the anticipation surrounding SpaceX's IPO will further heighten interest in this sector.

By acquiring Globalstar at this juncture, Amazon is, to some extent, positioning itself more clearly as a competitor ahead of SpaceX's IPO.

What are Amazon and SpaceX competing for?

On the surface, Amazon is building low-Earth orbit (LEO) satellites while SpaceX focuses on rockets and Starlink; however, from a business logic perspective, both are competing for the same gateway: satellite direct-to-device (D2D).

Records indicate that Globalstar's network was originally designed for low-data connectivity, making it suitable for emergency communications, weak coverage areas, and mobile terminal connections.

Amazon has explicitly stated that this transaction will help it deploy D2D services by 2028. Globalstar's announcement also directly noted that the system will assist mobile operators in extending voice, SMS, and data services to areas beyond the reach of terrestrial networks.

This implies that Amazon's acquisition of Globalstar is not merely a "supplementary business," but a play for the future communication gateway. Whoever can embed satellite links into smartphones, wearables, and carrier networks will have the opportunity to capture greater value at the connectivity layer.

While Starlink has taken the lead in establishing user scale, Amazon still has the chance to secure its own position in enterprise communications, emergency communications, and certain mass-market scenarios by leveraging Globalstar's spectrum, D2D capabilities, and the continuation of its partnership with Apple.

How will the SpaceX IPO impact this sector?

SpaceX is expected to raise $75 billion through an IPO and seek a valuation of up to $1.75 trillion; if this goal is nearly achieved, it will become one of the most significant listing events in U.S. market history.

Crucially, SpaceX's business is not limited to rocket launches; Starlink already accounts for a very high proportion of its revenue, with estimates cited by Reuters suggesting that Starlink contributes approximately 50% to 80% of SpaceX's revenue.

In the past, satellite internet was often regarded as a niche, long-cycle, and capital-intensive narrative; however, once SpaceX goes public with a trillion-dollar valuation, the market will begin to evaluate the industry with higher growth expectations and a greater strategic premium.

Amazon's acquisition of Globalstar is essentially an effort to position itself in the same sector ahead of the IPO, avoiding a lack of asset anchors during future passive comparisons. In other words, this is not a simple case of catching up, but rather proactive positioning.

The competition in satellite communications is shifting from "who launches first" to "who establishes the ecosystem first."

Amazon's acquisition of Globalstar, coupled with the approaching SpaceX IPO, reveals a broader trend: the satellite communications industry is shifting from a "launch capability race" to an "ecosystem integration race."

Whoever can integrate satellites, terminals, carriers, spectrum, cloud services, and application scenarios into a closed loop will have a better chance of securing a higher valuation in the next phase.

Amazon is filling its D2D capability gap through Globalstar, while SpaceX prepares to convert Starlink's scale advantage into a public valuation in the capital markets; both will ultimately push the industry into a new pricing range.

For investors, this means that satellite internet is no longer just a "concept play" but is evolving into an industry with M&A, IPOs, regulation, and a clear path to real revenue.

Amazon's acquisition of Globalstar is a capital move answering "how to catch up with Starlink," while SpaceX's IPO preparation is a capital market validation of "how much Starlink is worth."