Amazon said it will acquire Globalstar in a deal that gives it Globalstar’s satellite operations, infrastructure, assets and mobile-satellite spectrum licenses, while also setting up Amazon Leo to launch direct-to-device services beginning in 2028.
Under the merger agreement, Globalstar stockholders can choose either $90.00 in cash per share or 0.3210 shares of Amazon stock, with the stock value capped at $90.00 a share. Cash elections are limited to 40% of total Globalstar shares, and any excess cash election is converted into stock on a pro rata basis. The total consideration can be reduced by up to $110 million if Globalstar misses certain operational milestones.
Globalstar stockholders representing about 58% of the company’s combined voting power have already approved the transaction by written consent. Amazon said the deal is expected to close in 2027, pending regulatory approvals and Globalstar meeting certain Hibleo-4 replacement satellite milestones.
The acquisition is intended to expand Amazon Leo’s network beyond broadband into direct-to-device connectivity for phones and other cellular devices. Amazon said the new system will be able to deliver voice, data and messaging services and will be built to integrate with its first* and second-generation Leo systems. The company said the full network will include thousands of satellites and enough capacity to support hundreds of millions of customer endpoints.
Amazon also struck an agreement with Apple to continue satellite services on supported iPhone and Apple Watch models and to support future satellite features. Apple said its Emergency SOS via satellite service, launched more than three years ago, has already been used in real-world rescue cases. The current satellite features are available on iPhone 14 and later, and Apple Watch Ultra 3.
Globalstar said it has spent more than 30 years developing its satellite and spectrum platform, and Amazon said the combination will allow it to reach areas where terrestrial networks are delayed, too expensive to build, or vulnerable to disruption. Following these announcements, the company's shares moved -1.97%, and are now trading at a price of $207.54. For more information, read the company's full 8-K submission here.
