Amazon Just Bought a $12B Satellite Company. Here's Why Amazon Sellers Should Care. — Astra Blog
What Actually Happened
On April 14, Amazon signed a definitive agreement to buy Globalstar, the satellite operator best known for powering Apple's Emergency SOS feature on iPhones. The deal values Globalstar shares at $90 each, paid in a mix of cash and Amazon stock. It gives Amazon 24 operational satellites, global spectrum licenses, and the ability to connect standard smartphones directly to its satellite network without a dedicated terminal. Closing is expected in 2027, pending regulatory approval.
Deal Value$11.57 billion Market Cap Added (Day 1)$125 billion Satellites Acquired24 operational Expected Close2027, pending regulatory approval
The acquisition plugs directly into Amazon Leo, formerly Project Kuiper. Amazon Leo is the $10B+ low earth orbit constellation Amazon has been building since 2019. The plan is a 3,236-satellite network designed to deliver broadband to places terrestrial internet can't reach. Commercial service starts in 2026, with direct to device cellular coming in 2028. Andy Jassy has committed roughly $200 billion in Amazon capital expenditures for 2026, and satellites sit next to AI, chips, and robotics as priority areas.
Why This Matters for Sellers
The easy read is "Amazon is fighting Starlink." That's accurate and also not very interesting if you sell products on Amazon. The more useful read: Amazon is buying its way into the homes of customers who currently cannot shop on Amazon at all.
Roughly 2.6 billion people worldwide still lack broadband access. Even inside the U.S., the FCC estimates around 24 million people have no reliable high speed internet. Every one of those people is a potential Prime member, a potential Rufus query, a potential order.
2.6Bpeople worldwide who still lack broadband access 24MAmericans with no reliable high speed internet (FCC) 22%Amazon advertising revenue growth in Q4 2025
When Amazon extends connectivity to underserved regions, three things happen that affect sellers directly.
- The customer base expands in markets where you're already selling. Faster rural delivery was explicitly named in Jassy's shareholder letter as a rationale for this investment. That expansion is biggest internationally, where the connectivity gap is largest and Amazon's marketplace presence is still growing. If you sell in Europe, Australia, or emerging markets, the total addressable market tilted in your favor over the next five years.
- Ad inventory grows with the user base. More connected households means more Amazon search queries, more Rufus conversations, and more Sponsored ad impressions. Amazon's advertising revenue was already up 22% in Q4 2025. A network that brings hundreds of millions of new users into the ecosystem over the next decade keeps that growth curve going.
- Amazon's platform gets another layer of protection. Amazon is building its own delivery network to replace UPS. It invested in AI to own that layer. Now it's buying the connectivity layer. Every layer of infrastructure Amazon controls makes the marketplace harder to disrupt and your distribution channel more durable.
