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
