Amazon Agrees to Acquire Globalstar for $11.6 Billion
Amazon has agreed to acquire Globalstar in an approximately $11.6 billion deal, according to a joint announcement on Tuesday. This confirms weeks of speculation about the potential acquisition. Under the terms of the agreement:
- Globalstar shareholders can choose between receiving $90 per share in cash or Amazon stock valued at the same amount, representing a 23.5% premium over Globalstar's closing price on Monday. Cash elections are capped at 40%, with the remainder automatically converted to stock.
- The deal is scheduled to close in 2027, subject to regulatory approvals.
- Approximately 58% of Globalstar's combined voting power has already approved the transaction through written consent.
Alongside the acquisition, Amazon and Apple have signed a separate agreement for Amazon Leo—Amazon's low Earth orbit satellite network—to continue powering critical features on iPhone and Apple Watch, such as Emergency SOS via satellite.
Key Takeaways:
- Spectrum and Time: Amazon is acquiring Globalstar's spectrum licenses and operational infrastructure, enabling it to launch direct-to-device (D2D) satellite services from 2028.
- Cost-Effective Acquisition: The deal compresses years of development into a single transaction by leveraging Globalstar's existing resources.
- Regulatory Pressure: Amazon was already under pressure from the FCC to meet a mid-2026 deployment deadline for Leo, which now becomes part of an established timeline with Globalstar's infrastructure.