Key Highlights
- Amazon’s $11.6 billion acquisition of Globalstar ($GSAT) includes a cash-and-stock offer valued at $90 per share
- The transaction secures vital radio frequency spectrum for Amazon’s direct-to-device satellite offering planned for 2028
- Market reaction: Globalstar soared 9.6%, Amazon advanced 3.8%, while competitor AST SpaceMobile declined nearly 11%
- Apple’s Emergency SOS satellite functionality will migrate to Amazon’s Leo satellite constellation
- This marks Amazon’s second-biggest acquisition to date, with completion anticipated in 2027 following regulatory clearance
In a strategic push to compete with Elon Musk’s Starlink, Amazon has unveiled plans to acquire satellite operator Globalstar through an $11.6 billion transaction.
The agreement, disclosed on Tuesday, prices Globalstar shares at $90 each — representing a 31% premium over the April 1 closing price and approximately 117% above late-October trading levels.
Globalstar investors will have flexibility in choosing between $90 cash per share or 0.3210 shares of Amazon stock. However, the all-cash option is limited to 40% of the total transaction value.
Amazon stock advanced 3.8% to $249.02 following the announcement. Globalstar shares jumped 9.6% to $79.91. MDA Space, serving as Globalstar’s main contractor, gained 9%. Meanwhile, AST SpaceMobile, a rival in the direct-to-device segment, tumbled nearly 11% to $88.57.
Completion of the transaction is projected for 2027, contingent upon FCC regulatory clearance and achievement of deployment targets.
The deal represents Amazon’s second-largest corporate acquisition, trailing only its $13.7 billion Whole Foods transaction in 2017.
The Strategic Value of Radio Spectrum
While Globalstar maintains just a few dozen operational satellites, the satellite fleet isn’t the primary asset. The critical acquisition target is spectrum — FCC-authorized radio frequencies essential for delivering connectivity directly to standard smartphones.
“Amazon has now repeatedly claimed that their satellite system will offer better service than what’s out there now,” said Caleb Henry of Quilty Space. Amazon CEO Andy Jassy “would not be able to make a claim like that without first acquiring spectrum.”
Amazon’s Leo broadband constellation currently includes approximately 200 operational satellites. The company’s ultimate goal encompasses over 7,700 satellites, with regulatory requirements mandating roughly 1,600 to be operational by July.
Utilizing Globalstar’s spectrum, Amazon intends to introduce direct-to-device capabilities in 2028 — enabling mobile phone connectivity via satellite without traditional cellular infrastructure.
By comparison, Starlink operates 10,000 satellites currently serving approximately 10 million subscribers worldwide. The company has been advancing its own direct-to-device technology through collaboration with T-Mobile.
Apple’s Emergency Service Transitions to Amazon
A significant element of the transaction involves transferring Apple’s Emergency SOS satellite capability, presently supported by Globalstar on iPhone and Apple Watch devices, to Amazon Leo.
Apple committed $1.5 billion to Globalstar in 2024 and maintains approximately a 20% ownership position. The company has not yet clarified how this stake will be handled following the acquisition.
Amazon has additionally secured Delta Air Lines as a Leo customer for in-flight connectivity. Starlink boasts a more extensive airline partnership portfolio featuring United, Southwest, British Airways, and Emirates.
FCC Chair Brendan Carr stated Tuesday he is “very open-minded” to the deal, describing it as a potential driver for competition in an emerging market.
“Amazon has been falling behind Starlink on satellite broadband. Acquiring Globalstar allows them to catch up on their D2D spectrum position, and leap ahead on D2D deployment,” said Armand Musey of Summit Ridge Group.
Amazon noted the transaction’s final value will vary based on its stock price through closing. Globalstar’s equity valuation stood at approximately $10.8 billion as of April 9.





