Amazon has agreed to acquire Globalstar, Inc. for $11.57 billion in a combination of cash and stock. Shareholders of Globalstar will receive either $90.00 in cash or 0.3210 shares of Amazon common stock per Globalstar share, with the stock consideration capped at $90.00. Cash elections are limited to 40% of total shares, and any excess is automatically converted to stock. The total consideration may be reduced by up to $110 million if Globalstar fails to meet certain operational milestones, and the transaction is expected to close in 2027 subject to regulatory approvals and the fulfillment of closing conditions.
The acquisition is a strategic move to accelerate Amazon’s Amazon Leo satellite network, which aims to deploy over 3,200 low‑Earth‑orbit satellites by 2029. By adding Globalstar’s existing constellation, spectrum licenses—including Band 53/n53—and proven operational expertise, Amazon will strengthen its position against competitors such as SpaceX’s Starlink and expand its ability to provide direct‑to‑device services. The deal also secures the continuation of Amazon Leo’s partnership with Apple, which uses the network for Emergency SOS via satellite on iPhones and Apple Watches. Apple’s 2024 investment of $1.5 billion, giving it a 20% stake in Globalstar, was a key factor in the negotiations.
The transaction structure includes a cash and stock component, with a $90.00 cash or stock option per share and a cap on the stock portion. Cash elections are capped at 40% of total shares, and any excess is automatically converted to stock. The deal may be adjusted downward by up to $110 million if Globalstar does not meet specified milestones, and the closing date is set for April 13, 2027, with potential extensions. Regulatory approvals, including antitrust and foreign investment clearances, are required before the transaction can close.
Globalstar’s financial performance provides context for the valuation. In 2025 the company reported revenue of $273 million and a net loss of $8.7 million, a significant improvement from the $250.35 million revenue and $19.26 million loss reported in 2024. Management projects 2026 revenue of $280 million to $305 million. These figures illustrate Globalstar’s growing revenue base and narrowing loss profile, making it an attractive target for Amazon’s satellite strategy.
"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," said Panos Panay, Senior Vice President of Devices & Services at Amazon. "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," added Paul Jacobs, CEO of Globalstar.
The acquisition positions Amazon to accelerate its satellite internet ambitions, deepen its partnership with Apple, and enhance its competitive stance against Starlink. By integrating Globalstar’s constellation and spectrum assets, Amazon can expand Amazon Leo’s coverage and service offerings, potentially accelerating the rollout of direct‑to‑device connectivity for millions of users worldwide. The deal also signals Amazon’s commitment to investing in satellite infrastructure, with a $10 billion commitment to Project Kuiper and a planned deployment of 3,200 satellites by 2029. Regulatory approvals and milestone achievements will determine the final closing of the transaction, but the strategic alignment between Amazon and Globalstar is clear.
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