Amazon to Buy Globalstar for $11.6 Billion to Speed Amazon Leo

Overview

• Amazon agreed Tuesday to acquire Globalstar in a deal worth about $11.6 billion that offers $90 in cash per share or 0.32 Amazon shares capped at $90.
• The deal aims to close the gap with SpaceX’s Starlink, which has about 10,000 satellites and over 10 million users, as Amazon asks the FCC for more time to meet a July target to orbit 1,600 of its own craft.
• Amazon will integrate Globalstar’s satellites, ground network, and spectrum into Amazon Leo, and Apple’s iPhone and Apple Watch emergency SOS service will run on the Amazon system.
• Amazon says the purchase will help it launch direct-to-device service in 2028, which connects phones to satellites without cell towers.
• Closing is planned for 2027 pending regulatory approvals, and the FCC chair signaled openness to the deal as Globalstar shares jumped roughly 9%–11% and Amazon rose up to about 3% after the news.