Amazon has agreed to acquire satellite operator Globalstar for $11.57 billion in cash and stock, adding Globalstar’s 24‑satellite constellation, spectrum licenses, and direct‑to‑device (D2D) capabilities to Amazon’s Amazon Leo low‑Earth‑orbit network. The deal gives Globalstar shareholders a choice of $90 in cash per share or 0.3210 Amazon shares, with the stock consideration capped at $90 per share. Cash elections are limited to 40% of total shares, with the remainder converted to stock.
The transaction is expected to close in 2027, subject to regulatory approvals and the achievement of specific deployment milestones, including HIBLEO‑4 replacement satellite milestones. The total consideration can be reduced by up to $110 million if Globalstar fails to meet these milestones.
Strategically, the acquisition accelerates Amazon’s satellite ambitions and positions it to compete directly with SpaceX’s Starlink. By combining Globalstar’s proven D2D technology with Amazon Leo, the company can deliver direct‑to‑device services such as Emergency SOS and Find My for Apple devices, and expand its satellite‑based internet offerings to remote and mobile customers. Amazon Leo, rebranded from Project Kuiper in November 2025, plans to deploy over 3,000 satellites.
Globalstar’s financial context underscores the strategic value of the deal. In 2025 the company reported revenue of $273 million, a net loss of $8.7 million, and $447.5 million in cash and equivalents. For 2026, Globalstar projects revenue of $280 million to $305 million. The acquisition provides Amazon with an operational network and accelerates its timeline for satellite deployment.
Globalstar shares surged 10% in pre‑market trading following the announcement, while Amazon shares rose modestly. The market reaction reflects investor optimism about the strategic value of the acquisition, the premium offered, the strengthened Apple partnership, and the intensified competition with Starlink.
"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. We're excited to support Apple users through the Leo D2D system, and look forward to working with mobile network partners to help extend coverage to every corner of the planet." – Panos Panay, Senior Vice President of Devices & Services, Amazon
"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." – Greg Joswiak, Senior Vice President of Worldwide Product Marketing, Apple
"We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime." – Paul Jacobs, CEO, Globalstar. "2025 was a transformational year for Globalstar" and the company "focused on scaling the core business while laying the foundation for our next phase of growth."
The acquisition positions Amazon to offer a more comprehensive suite of satellite‑based connectivity services, strengthens its partnership with Apple, and provides a new high‑margin revenue stream in the rapidly growing satellite‑internet market. The deal also intensifies competition with Starlink, potentially reshaping the competitive landscape of low‑Earth‑orbit satellite services.
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