Overview
- Morgan Stanley set a $300 price target on Amazon and kept an Overweight rating after the Globalstar acquisition was announced.
- Amazon agreed to buy Globalstar for about $11.6 billion, or $90 per share, in a mix of cash and stock.
- The purchase adds 24 operating satellites, orders for 50 more, and L and S band spectrum used for direct links from satellites to phones in areas without cell towers.
- Amazon will assume and expand Globalstar’s Apple partnership that powers Emergency SOS, Messages, Roadside Assistance, and Find My on recent iPhones and Apple Watch Ultra.
- Amazon has launched about 241 of a planned 3,236 satellites and has asked the FCC for more time to meet a July 2026 deployment milestone, with 2026 capital spending near $200 billion likely to pressure free cash flow.