FCC Clears Amazon's $11.6 Billion Globalstar Acquisition

By Rebecca Stone

On October 27, 2026, the US Federal Communications Commission approved Amazon’s $11.6 billion acquisition of Globalstar, a deal expected to close in 2027.

Globalstar shareholders may receive $90 in cash for each share they hold, or 0.321 Amazon shares for each Globalstar share. The authorization does not complete the purchase: the companies still expect to close the transaction in 2027.

What does the FCC approval change?

Amazon pursued Globalstar largely for its spectrum assets, which the company plans to use for direct-to-device, or D2D, service. Globalstar holds rights to exclusive D2D spectrum that Amazon told the FCC it needed to establish its own service. Those rights could let Amazon avoid dependence on established terrestrial carriers and create a potential competitor to SpaceX.

“President Trump is restoring America’s technology leadership. And this FCC authorization is a significant step towards supercharging next-generation connectivity,” Federal Communications Commission Brendan Carr said. “By approving this deal, the FCC has empowered Amazon Leo to deliver fast, next-gen satellite broadband services, increase competition, and help communities stay connected all across the country.”

“Fast, next-gen” broadband and wider connectivity remain Carr’s forward-looking claims, not demonstrated service results.

The FCC said Amazon and Globalstar persuaded it that another deep-pocketed company could provide D2D mobile service. Commenters told the agency that “the transaction would strengthen competition by offering Amazon the most practical path to being able to offer D2D connectivity.” They said the deal would “put Amazon on the path” to a broader mobile-satellite offering for a variety of customers.

Yippy’s challenge did not change the outcome. Yippy, which says Globalstar partly owns it, asked the FCC to block or condition the transaction. Yippy has previously sued Globalstar for breach of contract and told the commission the companies remain in arbitration. The FCC declined both requests.

How does Amazon compare with rivals buying D2D spectrum?

The acquisition places Amazon alongside companies spending or acquiring businesses to obtain direct-to-device spectrum. The competitive backdrop includes:

• SpaceX has spent more than $20 billion acquiring spectrum rights for its planned next-generation direct-to-device service.
• Rocket Lab is acquiring Iridium for $8 billion, also to obtain resources for direct-to-device service.
• AST SpaceMobile has partnered with AT&T and Verizon and is paying $550 million in a bid to use Ligado’s exclusive airwaves.

Public Knowledge and the New America’s Open Technology Institute, both of which typically oppose telecom mergers, supported the deal, as did the Information Technology & Innovation Foundation. All three cited the prospect of increased competition when telling the FCC why they supported the transaction.

The FCC has also been moving to make more spectrum available for direct-to-device service as demand increases. That policy direction supports Amazon’s strategy, but the agency has not yet approved the constellation that would put that strategy into operation.

What still needs approval?

Amazon has asked the FCC for authority to launch 5,105 satellites supporting its planned D2D service. That request remains pending, so the acquisition approval does not yet authorize that constellation.

The announcement gives no launch date, market list, subscriber target, coverage footprint or throughput for Amazon’s D2D offering. Until those figures emerge, Carr’s claims about fast broadband and wider connectivity remain a commercial forecast rather than a measured network outcome.

Separately, the FCC cleared Globalstar’s C-3 application last week. The 48-satellite system would improve Globalstar’s existing D2D service for Apple phones, which provides emergency communications. The FCC also said Amazon could use that authorization to launch the system itself. This offers an existing-service path, but not proof that the 5,105-satellite network is ready.

Amazon plans to begin fixed broadband via satellite in 2026. The company has nearly 400 satellite units in orbit and FCC approval for 3,236. That is roughly one in eight of the authorized total. The announcement gives no pricing, coverage or throughput targets for the fixed service either.

Neither disclosure provides a schedule for bringing the full authorized capacity into commercial use. The next milestones are a 2026 fixed-broadband launch, an FCC decision on 5,105 satellites and a 2027 transaction close. Until those steps occur, the approval supports a competition thesis rather than a measured Amazon network.