Amazon Leo challenges Starlink dominance with $11.57 billion Globalstar acquisition for D2D satellite connectivity

The race for space-based mobile connectivity has shifted from a niche experiment to a core infrastructure requirement for the next generation of smartphones. As terrestrial 5G networks reach their physical limits in remote areas, the ability to connect directly to satellites without specialized hardware is becoming the primary battleground for tech giants and mobile operators. Amazon announced on April 14, 2026, a definitive agreement to acquire Globalstar in a deal valued at approximately $11.57 billion. The transaction integrates Globalstar’s satellite operations and its critical radio frequency spectrum into the newly rebranded Amazon Leo network. As part of the deal, Amazon will take over the infrastructure powering Apple’s emergency satellite features for the iPhone 14 and newer models. This ensures Apple’s safety services remain operational while moving them onto Amazon’s higher-capacity second-generation satellite fleet. For the MENA region, this expansion is particularly relevant for the energy and logistics sectors. In line with the Saudi Vision 2030 and the UAE AI Strategy 2031, high-speed satellite connectivity is essential for autonomous operations in the Empty Quarter and remote offshore rigs in the Arabian Gulf. The Leo D2D system, scheduled for 2028, will allow regional telecom providers to extend coverage to these zones without building expensive desert towers. However, Amazon is still playing a heavy game of catch-up. While Starlink already has roughly 10,000 satellites in orbit serving millions of users, Amazon Leo only has 241 production satellites as of early 2026. The 2028 timeline for Direct-to-Device services is nearly two years behind SpaceX’s current trajectory, raising questions about whether Amazon can deploy fast enough to capture the first-mover advantage in enterprise contracts.

By the Numbers

• Acquisition Value: $11.57 billion

• Price per Share: $90.00

• Cash/Stock Split: 40% cash cap / 60% stock

• Target D2D Launch: 2028

• Current Satellites: 241 (vs Starlink's ~10,000)

What to Watch: The completion of Globalstar’s HIBLEO-4 replacement satellite milestones in late 2027, which is a mandatory condition for the final deal closing.