Amazon's True Goal Was Not Satellites But "Radio Waves"—The Surprising Content of the $11.6 Billion Acquisition Strategy to Counter Starlink
Amazon has officially announced that it will acquire satellite communications company Globalstar for $11.6 billion (approximately 1.7 trillion yen). For Amazon, this is its largest M&A deal since the acquisition of Whole Foods in 2017.
The essence of this acquisition lies in securing "frequency bands (spectrum)," not the satellites themselves. How will Amazon attempt to catch up in the satellite communications market, where SpaceX's Starlink holds an overwhelming lead? And how does this move relate to infrastructure investment in the AI era? Based on Bloomberg Tech's reporting, we have organized the key points that investors and business professionals should understand.
1. Amazon x Globalstar—The Full Picture of the $11.6 Billion Acquisition
1-1. Basic Structure of the Deal
Amazon will acquire all outstanding shares of Globalstar at $90 per share. This represents a premium of over 100% from the stock price in October 2024, when the acquisition was first leaked, indicating Amazon's serious commitment.
The transaction is structured as a mix of stock and cash, with a cap of 40% on the cash portion. Shareholders can choose the ratio of cash and stock before closing, but even if everyone requests cash, a maximum of 40% will be paid in cash, with the remainder paid in Amazon stock.
Bloomberg reporter Michelle Davis points out, "There are limited players with the capacity to invest this much money into satellite communications. If you want to win in this market, it means it will cost that much."
1-2. What Amazon Wanted Was the "Frequency Band"
The primary purpose of the acquisition is the MSS (Mobile Satellite Service) band held by Globalstar. Bloomberg Intelligence analyst John Butler explains it as follows:
"The essence of this deal is spectrum, not the satellites themselves. Globalstar's constellation is quite thin as a satellite network. However, the MSS band they possess is a valuable asset that enables direct-to-cell communication from satellites to smartphones."
The FCC (Federal Communications Commission) limits the use of many radio frequency bands to terrestrial communications. The MSS band is one of the few bands capable of direct communication from satellites to mobile phones, and its scarcity drives up Globalstar's value.
2. Starlink vs. Amazon Kuiper—The Current State of the Satellite Communications Race
2-1. SpaceX's Overwhelming Lead
Starlink, operated by SpaceX, currently has approximately 10,000 satellites in orbit, of which about 650 are direct-to-cell capable satellites. For its broadband service, it offers plans ranging from 100Mbps to 400Mbps and already has users worldwide.
On the other hand, Amazon's Project Kuiper is significantly behind SpaceX in terms of the number of satellites launched. The Globalstar acquisition can be seen as a strategic move to bridge this gap from the perspective of securing frequency bands.
2-2. Differences Between Broadband and Direct-to-Cell
According to Butler's explanation, the technical differences between the two are clear.
Broadband Satellites: Provide high-speed, high-capacity communication, but users require fixed receiving equipment. Starlink's main service falls into this category.
Direct-to-Cell (Satellite-to-Mobile Direct Communication): Technology that delivers radio waves directly to mobile phones. Since the transmission and reception output of smartphones is very low, dedicated satellites equipped with large antennas are required. Currently, communication is limited to text messages, but there are plans to support video and web browsing with next-generation satellites.
Amazon has announced that it aims to launch its commercial direct-to-cell service in 2028, signaling its readiness to focus on building infrastructure that could be called "base stations in space."
2-3. The Third Entity: AST SpaceMobile
In the satellite communications market, besides Starlink and Amazon,AST SpaceMobileis also attracting attention as a player with advanced satellite technology. Mr. Butler stated that "the race has just begun," indicating his view that the competition is about to intensify.
3. Infrastructure Investment in the AI Era—The Intersection of Space, Energy, and Semiconductors
3-1. Capital Inflow into "Space x Defense Tech"
A portfolio manager who appeared on the program pointed out that capital inflow is accelerating not only into AI-related fields but also into the space and defense tech sectors.
"While market interest has been focused on AI, space and defense technology have remained underinvested in developed countries. Now, a structural trend is emerging in this field as well."
Amazon's acquisition of Globalstar can be positioned as an example of this major trend.
3-2. The Power Problem of AI Infrastructure—The Cases of Oracle and Bloom Energy
Infrastructure in the AI era is not limited to space.Tightening power supplyis also a serious challenge.
Oracle, faced with the need to secure 4.5 GW (gigawatts) of power in an unprecedentedly short period for its massive contract with OpenAI, signed a power supply agreement using Bloom Energy's fuel cells. There are reports that for its Texas data center, it is paying over $1 billion annually just for power supply.
Bloomberg reporter Brodie Ford explained, "Even if you can secure chips and customers, there are increasing cases where you cannot get the power to run the data center. The strength of Bloom Energy's fuel cells is that they can bring power online more quickly than gas turbines."
3-3. NASDAQ 100's 10-Day Winning Streak and the Market Consensus That "AI Won't Stop"
As background to the article, the NASDAQ 100 index has recorded 10 consecutive trading days of gains, setting its longest streak since 2021. During this period, approximately $3 trillion has been added in terms of market capitalization.
Denny Fish, a portfolio manager at Janus Henderson, explains the background of this bullish sentiment as follows:
"Regardless of the geopolitical environment, the trend driven by AI advancements over the past three years will not slow down. Unless there is conviction that models have reached a plateau, one must continue to participate in this investment cycle. I have been in the technology industry for over 30 years, and such trends last much longer than investors imagine. This is the most significant technological shift in our lifetime."
However, he expressed a cautious stance regarding the software sector. This is because the step-function improvements in AI model capabilities, such as Claude 4.6 and OpenAI Codex, are causing the market to re-evaluate the competitive advantages and terminal values of existing software companies.
"Picks and shovels—that is, investing in infrastructure—is safer," he said, indicating his view that companies supporting the AI foundation, such as semiconductors, optical components, energy, and data center infrastructure, remain promising.
4. Anthropic's "Mythos" and the U.S. Treasury—A New Phase in AI Cybersecurity
4-1. U.S. Treasury Seeks Access to Mythos
In the latter half of the program, news regardingAnthropic's latest AI model, "Mythos" was also reported. It is said that the U.S. Treasury's technology team is seeking access to Mythos to discover vulnerabilities in their own systems.
Anthropic has warned that Mythos possesses capabilities that could be used to support cyberattacks, and it is currently provided only to a limited number of organizations. Treasury Secretary Bessent, along with Federal Reserve Chair Powell, previously convened Wall Street leaders and called on them to "find your own vulnerabilities before the attackers do."
4-2. Is it possible to achieve equivalent capabilities with open source?
A cybersecurity expert who appeared on the program expressed a certain level of appreciation for Mythos's capabilities while also presenting an interesting counterargument.
"The ability to use AI for vulnerability discovery has been proven since August 2025. We have been able to discover the same vulnerabilities that Mythos found using even small-scale open-source models like GPT 5.4. What is important is not the capability of the model alone, but the systems and scaffolds built around it."
Furthermore, the expert pointed out the danger of limiting defensive capabilities to closed models like Mythos, arguing that "the foundation of the internet is built on open source. Defense should also be democratized through open source."
5. Other Notable News
5-1. Disney Announces Layoffs of Approximately 1,000 Employees
Disney has announced its first round of layoffs of approximately 1,000 people under the new CEO who took over from Bob Iger in March 2026. While this is a company-wide reduction, it is said to have a particularly large impact on the marketing department. Although relatively small for a company with 230,000 employees, it is being watched as a move that indicates the direction of the new leadership.
5-2. AI Power Demand and Its Impact on the U.S. Midterm Elections
With the rapid expansion of data centers, there are reports that electricity rates in some parts of the United States have risen by as much as 267%. Bloomberg Big Take reports that residents in Pennsylvania are voicing concerns that "the surge in electricity bills is the fault of data centers," and that power costs are becoming a campaign issue that will influence voter behavior in the 2026 midterm elections.
