Amazon announced a definitive merger agreement to acquire satellite operator Globalstar for $11.57 billion in cash and stock, a transaction that will close in 2027. The deal expands Amazon’s low‑Earth‑orbit satellite network, Amazon Leo—formerly Project Kuiper—by adding Globalstar’s existing constellation, spectrum licenses, and operational expertise.
Under the agreement, Amazon Leo will provide satellite‑based services to Apple iPhones and Apple Watches, enabling features such as Emergency SOS, Messages, Find My, and Roadside Assistance via satellite. Apple, which has been a major customer of Globalstar and invested $1.5 billion in 2024, will continue to rely on Amazon Leo for these services, ensuring continuity for its satellite‑enabled features.
Amazon’s acquisition accelerates its direct‑to‑device (D2D) ambitions, with plans to launch a D2D system in 2028. The addition of Globalstar’s spectrum, particularly Band n53, gives Amazon a competitive edge against SpaceX’s Starlink and strengthens its position in the growing satellite broadband market. "There are billions of customers out there living, traveling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide. By combining Globalstar's proven expertise and strong foundation with Amazon's customer‑obsession and innovation, customers can expect faster, more reliable service in more places—keeping them connected to the people and things that matter most," said Amazon Senior Vice President of Devices & Services, Panos Panay.
Globalstar’s financial performance in 2025 showed a 9% revenue increase to $273 million and an adjusted EBITDA margin of 50%, but the company posted a net loss of $11.6 million in Q4 2025 and an operating margin of –0.5%. The $11.57 billion purchase price represents a premium to Globalstar’s recent trading levels and reflects Amazon’s valuation of the company’s satellite assets and future growth potential.
The transaction is subject to regulatory approvals and will close in 2027, contingent on Globalstar achieving certain HIBLEO‑4 replacement satellite milestones. The deal structure includes cash and stock options for Globalstar shareholders, with proration mechanisms that limit cash elections and settle excess shares in Amazon stock. "We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime. For more than 30 years, Globalstar has executed on this vision through sustained, long‑term investment in technological innovation, operational excellence, and development of globally harmonized spectrum across both satellite and terrestrial applications. The combination with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world," said Globalstar CEO Paul Jacobs.
Apple’s senior vice president of worldwide product marketing, Greg Joswiak, added, "Apple and Amazon have a long and proven track record of working together through Amazon's core infrastructure services, and we look forward to building on that collaboration with Amazon Leo. This ensures our users will continue to have access to the vital satellite features they have come to rely on, including Emergency SOS, Messages, Find My, and Roadside Assistance via satellite, so they can stay safe and connected while off the grid."
revised_sentiment_rating":2} }
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.