Key Highlights
- Amazon will acquire Globalstar ($GSAT) in an $11.6 billion transaction, paying $90 per share in cash and stock
- The acquisition provides Amazon with critical radio frequency spectrum for launching satellite-to-phone connectivity by 2028
- Globalstar shares soared 9.6% while Amazon climbed 3.8%; competitor AST SpaceMobile dropped nearly 11%
- Apple’s Emergency SOS satellite functionality will migrate to Amazon’s Leo constellation
- This marks Amazon’s second-biggest acquisition in history, with completion targeted for 2027 following regulatory clearance
Amazon has announced plans to acquire satellite communications company Globalstar for $11.6 billion, a strategic move designed to narrow the competitive distance with Elon Musk’s Starlink in the rapidly expanding satellite connectivity sector.
The transaction, revealed on Tuesday, prices Globalstar at $90 per share — representing a premium exceeding 31% over its April 1 closing price and approximately 117% above its late-October valuation.
Globalstar investors will have the option to receive $90 cash per share or 0.3210 shares of Amazon stock per share. The cash component is limited to 40% of the total transaction value.
Amazon stock advanced 3.8% to $249.02 following the announcement. Globalstar jumped 9.6% to $79.91. MDA Space, which serves as Globalstar’s main contractor, gained 9%. AST SpaceMobile, a key rival in the satellite-to-device market, plunged nearly 11% to $88.57.
The transaction is anticipated to finalize in 2027, contingent upon FCC regulatory approval and achieving specific deployment benchmarks.
This represents Amazon’s second-largest deal ever, trailing only its $13.7 billion acquisition of Whole Foods in 2017.
The Strategic Value of Spectrum Rights
Globalstar currently maintains just a few dozen operational satellites, but that’s hardly the primary attraction. The genuine asset is spectrum — the FCC-authorized radio frequencies essential for delivering connectivity straight to standard smartphones.
“Amazon has now repeatedly claimed that their satellite system will offer better service than what’s out there now,” said Caleb Henry of Quilty Space. Amazon CEO Andy Jassy “would not be able to make a claim like that without first acquiring spectrum.”
Amazon’s Leo broadband constellation presently has approximately 200 satellites operational. The company ultimately targets over 7,700 satellites, with regulatory requirements mandating about 1,600 to be deployed by July.
With Globalstar’s assets, Amazon intends to roll out a direct-to-device platform in 2028 — enabling mobile devices to connect via satellite without relying on traditional cellular infrastructure.
Starlink, by contrast, already operates 10,000 satellites serving approximately 10 million subscribers worldwide. The company has been advancing its own satellite-to-phone technology through a collaboration with T-Mobile.
Apple’s Emergency Service Transitioning to Amazon Leo
A significant element of the agreement: Apple’s Emergency SOS satellite capability, presently supported by Globalstar on iPhones and Apple Watch devices, will shift to Amazon Leo.
Apple committed $1.5 billion to Globalstar in 2024 and currently owns approximately 20% of the company. Apple has not yet commented on the future of its investment following the acquisition.
Amazon has additionally secured Delta Air Lines as a customer for Leo-powered in-flight Wi-Fi. Starlink maintains a more extensive airline client base including United, Southwest, British Airways, and Emirates.
FCC Chair Brendan Carr stated Tuesday he is “very open-minded” to the deal, characterizing it as a possible driver for competition in an emerging market.
“Amazon has been falling behind Starlink on satellite broadband. Acquiring Globalstar allows them to catch up on their D2D spectrum position, and leap ahead on D2D deployment,” said Armand Musey of Summit Ridge Group.
The transaction value, Amazon acknowledged, will vary based on its stock price until completion. Globalstar’s equity was appraised at roughly $10.8 billion as of April 9.
