Amazon has announced plans to spend about $11.57 billion to acquire Globalstar, aiming to expand its satellite business and compete more strongly in the growing space-based internet market.

The deal, revealed on Tuesday, will help Amazon accelerate its long-running low-earth orbit satellite initiative, known as Project Leo, by deploying thousands of satellites to support internet and mobile services.

Amazon said the acquisition aligns with its long-term plan to strengthen space-based connectivity and build a next-generation satellite network, which is expected to be operational by 2028.

The move will intensify competition with Starlink, launched in 2019 by Elon Musk. Starlink currently has a major lead, with more than 10,000 active satellites serving over 10 million users worldwide, while Amazon`s network has only about 200 satellites in orbit.

Starlink operates under SpaceX and is considered a key revenue source for the firm. SpaceX is also preparing for a potential public listing later this year, with its valuation expected to surpass $1 trillion.

Even after adding Globalstar`s existing network of around 50 satellites, Amazon will need to significantly scale up production to meet its target of thousands of satellites by 2028.

Amazon CEO Andy Jassy recently said the company has already secured agreements with several major organisations, including Delta Air Lines, JetBlue, AT&T, Vodafone, DIRECTV Latin America, Australia`s National Broadband Network, and NASA, to use its satellite services once the system is fully operational.

As part of the deal, Amazon will take control of Globalstar`s infrastructure across multiple locations, including the United States, Ireland, Brazil and France.

Founded in 1991, Globalstar provides satellite communication services and has been working with Apple since 2022 to offer emergency "SOS" connectivity on iPhones and Apple Watches. Apple acquired a 20% stake in the company in 2024.

Amazon said it has reached an agreement with Apple to continue providing the emergency satellite feature on its devices.

Amazon is offering Globalstar investors $90 per share in cash or equivalent Amazon stock under the takeover deal.

Meanwhile, Blue Origin, founded by Jeff Bezos, is also entering the satellite internet market. Its project, TerraWave, aims to launch at least 5,400 satellites by 2027 to provide connectivity services to large businesses.