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A Satellite is a tournament in which the prize is entry into a larger tournament.
This is often a less expensive route for players to get into the larger tournaments which can often have big buy-ins. For example, a Satellite might have a $100 buy in and award one seat to a tournament with a $1000 buy in.
This makes them a popular way for players to get into a high-stakes tournament when they don’t want to spend such a large amount on the buy in.
Sometimes Satellites award more than one seat into a bigger event and sometimes you will find that a Satellite will have its own ‘mini-satellite’ for players who think the buy in to the Satellite is too large.