Amazon to Acquire Globalstar in $11.6 Billion Deal to Expand Satellite Network

Amazon.com ($AMZN) has agreed to acquire Globalstar ($GSAT) in a roughly $11.6 billion deal, aiming to expand its low-earth-orbit satellite network and offer direct-to-device connectivity in competition with Starlink.

• Globalstar shareholders will receive either $90 per share in cash or 0.3210 shares of Amazon stock, capped at $90 per share.
• The offer represents a premium of about 23.5% to Globalstar’s prior closing price.
• Amazon will acquire Globalstar’s satellite operations, infrastructure, and spectrum licenses with global authorizations.
• The deal is expected to close in 2027, with Amazon planning to deploy its own direct-to-device satellite system starting in 2028.
• Globalstar currently provides satellite connectivity for devices, including powering emergency services features on iPhones.
• The acquisition supports Amazon’s effort to scale its satellite network as demand grows for connectivity in remote areas.

Relevant Companies

• Amazon.com ($AMZN) – Expands its satellite network and direct-to-device capabilities through the acquisition.
• Globalstar ($GSAT) – Being acquired at a premium, providing existing satellite infrastructure and spectrum.
• Apple ($AAPL) – Uses Globalstar’s network for iPhone satellite features, which may be impacted by the acquisition.

Editor’s Note: This is a developing story. This article may be updated as more detail