Key Highlights
- Amazon’s $11.6 billion acquisition of Globalstar ($GSAT) includes a cash-and-stock offer valued at $90 per share
- Strategic radio frequency spectrum access enables Amazon to roll out direct-to-device satellite connectivity by 2028
- Market reaction shows Globalstar climbing 9.6%, Amazon advancing 3.8%, while AST SpaceMobile declined nearly 11%
- Apple’s Emergency SOS satellite functionality will migrate to Amazon’s Leo satellite infrastructure
- Amazon’s largest deal since Whole Foods awaits 2027 closure following regulatory clearance
Amazon has announced plans to acquire satellite operator Globalstar through an $11.6 billion transaction, positioning the e-commerce and cloud computing giant to compete directly with Elon Musk’s Starlink in satellite communications.
The transaction, revealed Tuesday, establishes a $90 per share valuation for Globalstar — representing a 31% premium over the company’s April 1 closing price and approximately 117% above where shares traded in late October.
Shareholders of Globalstar can select between $90 cash per share or 0.3210 shares of Amazon stock per share. Cash consideration in the overall deal carries a 40% maximum threshold.
Amazon stock advanced 3.8% to $249.02 following the announcement. Globalstar shares jumped 9.6% to $79.91. MDA Space, serving as Globalstar’s principal contractor, gained 9%. AST SpaceMobile, competing in the direct-to-device segment, tumbled nearly 11% to $88.57.
Completion of the transaction is anticipated in 2027, contingent upon FCC regulatory approval and achievement of deployment benchmarks.
This represents Amazon’s largest acquisition since purchasing Whole Foods for $13.7 billion in 2017.
Radio Frequency Spectrum Drives Strategic Value
Globalstar maintains only around two dozen operational satellites currently, yet the satellite fleet represents a secondary consideration. The primary asset lies in spectrum access — FCC-licensed radio frequencies essential for delivering connectivity directly 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 currently includes approximately 200 satellites in orbit. The company targets eventual deployment of over 7,700 satellites, with regulatory requirements mandating roughly 1,600 in orbit by July.
The Globalstar acquisition enables Amazon to introduce direct-to-device service in 2028 — establishing satellite connections to mobile phones without requiring cell tower infrastructure.
Starlink has deployed 10,000 satellites serving approximately 10 million users worldwide. The company continues developing direct-to-device capabilities through its T-Mobile partnership.
Apple’s Emergency Feature Transitions to Amazon Infrastructure
A significant component of the agreement: Apple’s Emergency SOS satellite functionality, currently utilizing Globalstar on iPhone and Apple Watch devices, will shift to Amazon Leo.
Apple invested $1.5 billion in Globalstar during 2024 and maintains approximately a 20% ownership position. The company has yet to address questions regarding the future of that stake following the acquisition.
Amazon has secured Delta Air Lines as a Leo customer for in-flight Wi-Fi services. Starlink maintains airline partnerships spanning United, Southwest, British Airways, and Emirates.
FCC Chair Brendan Carr stated Tuesday he remains “very open-minded” regarding the transaction, describing it as a potential driver for competition in this developing 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.
Amazon indicated the transaction value will adjust based on share price movements through closing. Globalstar equity carried a valuation of approximately $10.8 billion as of April 9.
