Key Moments
- Amazon.com agreed to buy Globalstar in an $11.57 billion transaction to strengthen its satellite communications business.
- Globalstar shareholders can choose either $90 in cash or 0.3210 Amazon shares for each of their Globalstar shares.
- Amazon aims to deploy about 3,200 low-Earth-orbit satellites by 2029, with roughly half in place by a July 2026 regulatory deadline.
Deal Overview
Amazon.com said on Tuesday it would acquire Globalstar in a transaction valued at $11.57 billion, in a move designed to accelerate the development of its satellite network and intensify competition with SpaceX’s Starlink service.
The announcement followed recent media reports that the two companies had been in acquisition talks.
Market Reaction and Share Performance
Globalstar shares were up more than 9% in premarket trading after the deal was announced. The stock had already increased more than 6% over the previous two weeks amid speculation about a potential transaction.
The satellite operator’s shares had nearly doubled in value last year and had gained about 12% so far this year prior to the formal acquisition news.
Transaction Terms
Under the terms of the agreement, Globalstar shareholders will be able to choose between cash and stock consideration. Each Globalstar share can be exchanged for either $90 in cash or 0.3210 shares of Amazon common stock, according to the companies.
| Item | Details |
|---|---|
| Deal value | $11.57 billion |
| Cash election | $90 per Globalstar share |
| Stock election | 0.3210 shares of Amazon common stock per Globalstar share |
Amazon’s Satellite Ambitions
Amazon plans to expand its presence in low-Earth orbit by deploying about 3,200 satellites by 2029. Roughly half of that constellation is required to be in orbit by a regulatory deadline in July 2026.
The company currently operates a network of more than 200 satellites and is preparing to launch its satellite internet services later this year.
Amazon’s satellite initiative was started in 2019 by founder and former CEO Jeff Bezos under the name Project Kuiper, which is now referred to as Amazon Leo.
Competitive Landscape: Starlink vs. Amazon
Amazon’s move deepens its rivalry with Elon Musk’s Starlink, which is described as the dominant satellite-based internet provider. Starlink operates a network of more than 10,000 satellites that serve more than nine million users worldwide.
Globalstar’s Existing Business and Network
Globalstar, based in Covington, Louisiana, is widely known as the service supporting Apple’s “Emergency SOS” feature. The company currently runs a fleet of about two dozen satellites in low-Earth orbit.
Late last year, Globalstar said that a new network under development, backed by Apple, would boost its constellation to 54 satellites, including a limited number of backup units.
Globalstar provides voice, data, and asset-tracking solutions to clients across enterprise, government, and consumer segments.
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