Amazon said it will acquire Globalstar in a deal that gives Amazon Leo access to Globalstar’s satellite fleet, radio-frequency spectrum and mobile satellite services expertise, while adding direct-to-device service to Amazon’s low-Earth-orbit network.
Under the merger terms, Globalstar stockholders can choose either $90.00 in cash or 0.3210 shares of Amazon stock for each Globalstar share, with the stock alternative capped at $90.00 per share. Cash elections are limited to 40% of total Globalstar shares, with excess cash elections converted to stock on a pro rata basis.
Amazon said the total consideration could be reduced by as much as $110 million if Globalstar misses certain operational milestones.
The companies said Globalstar stockholders holding about 58% of the combined voting power have already approved the transaction by written consent.
Amazon said its next-generation direct-to-device satellite system will begin deployment in 2028. The company said the system will deliver more advanced voice, data and messaging services to mobile phones and other cellular devices, and that it will offer higher spectrum use and efficiency than legacy direct-to-cell systems.
Amazon said its full Leo network will include thousands of satellites in low Earth orbit and enough capacity to support hundreds of millions of customer endpoints worldwide.
The company also announced an agreement with Apple to continue satellite connectivity for supported iPhone and Apple Watch models. Apple said the service already supports emergency SOS, messaging with friends and family, roadside assistance and location sharing on iPhone 14 and later and Apple Watch Ultra 3. Amazon said it will support those devices through Globalstar’s existing and planned constellations and later through Amazon Leo’s expanded network.
Globalstar said it has spent more than 30 years building its non-geostationary orbit and direct-to-device capabilities. Amazon said the combination of Globalstar’s spectrum and existing mobile-satellite infrastructure with Amazon Leo’s scale will extend coverage into areas where terrestrial networks are unavailable, costly to build or vulnerable to disruption.
The transaction is expected to close in 2027, subject to regulatory approvals and certain satellite-milestone requirements. Today the company's shares have moved -10.54% to a price of $60.275. For the full picture, make sure to review Globalstar's 8-K report.
