Key Highlights
- Amazon’s acquisition of Globalstar ($GSAT) totals $11.6 billion, with a price of $90 per share in cash and stock
- The transaction provides Amazon with essential radio frequency spectrum for direct-to-device satellite connectivity launching in 2028
- Globalstar shares soared 9.6% while Amazon advanced 3.8%; competitor AST SpaceMobile declined nearly 11%
- Apple’s current Emergency SOS satellite functionality will migrate to Amazon’s Leo satellite infrastructure
- This represents Amazon’s second-largest acquisition in company history, with completion targeted for 2027 subject to regulatory clearance
Amazon has announced its intention to acquire satellite communications company Globalstar through an $11.6 billion transaction, marking a significant move to compete with Elon Musk’s Starlink in the rapidly expanding satellite connectivity sector.
The agreement, unveiled on Tuesday, prices Globalstar shares at $90 each — representing a premium exceeding 31% compared to the April 1 closing price and approximately 117% above the late-October valuation.
Shareholders of Globalstar will have the option to receive either $90 cash per share or 0.3210 shares of Amazon stock. Cash consideration is limited to 40% of the total transaction value.
Amazon stock advanced 3.8% to reach $249.02 following the announcement. Globalstar shares jumped 9.6% to $79.91. MDA Space, serving as Globalstar’s principal contractor, increased 9%. AST SpaceMobile, a direct rival in direct-to-device satellite services, tumbled nearly 11% to $88.57.
The transaction is anticipated to finalize in 2027, contingent upon FCC regulatory approval and achieving specific deployment targets.
This acquisition ranks as Amazon’s second-largest corporate purchase, trailing only its $13.7 billion Whole Foods acquisition completed in 2017.
The Strategic Value of Spectrum Access
Globalstar maintains just a few dozen operational satellites, but the satellite count isn’t the primary attraction. The genuine asset lies in spectrum access — the FCC-authorized radio frequencies essential for delivering connectivity directly to standard smartphones without modifications.
“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 operates approximately 200 satellites in orbit. The company’s ultimate goal encompasses over 7,700 satellites, with regulatory requirements mandating roughly 1,600 satellites in orbit by July.
Utilizing Globalstar’s infrastructure, Amazon intends to introduce a direct-to-device service by 2028 — enabling mobile phone connectivity directly through satellites, eliminating the need for cellular towers.
In comparison, Starlink has deployed 10,000 satellites currently serving approximately 10 million subscribers worldwide. The company has been advancing its own direct-to-device technology through a strategic alliance with T-Mobile.
Apple’s Satellite Service Transitions to Amazon Leo
A significant component of the transaction involves transferring Apple’s Emergency SOS satellite functionality, presently supported by Globalstar for iPhone and Apple Watch devices, to Amazon’s Leo network.
Apple contributed $1.5 billion to Globalstar in 2024 and currently maintains approximately a 20% ownership position. The company has not yet clarified the fate of this stake following Amazon’s acquisition.
Amazon has additionally secured Delta Air Lines as a customer for Leo-powered in-flight Wi-Fi services. Starlink maintains partnerships with a more extensive airline network including United, Southwest, British Airways, and Emirates.
FCC Chair Brendan Carr stated Tuesday he is “very open-minded” to the deal, calling it a potential catalyst 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.
Amazon noted that the final transaction value will vary based on its stock price fluctuations until the deal closes. As of April 9, Globalstar’s equity valuation stood at approximately $10.8 billion.
