Amazon Accelerates Satellite Ambitions with $11.6 Billion Globalstar Acquisition

Amazon.com (AMZN) has announced a definitive agreement to acquire Globalstar (GSAT) for $11.6 billion. Under the terms of the deal, Amazon will pay $90 per share in a combination of cash and stock, representing a 23% premium over the company's recent valuation. The transaction is expected to close in 2027, subject to regulatory approvals. The acquisition is a strategic leap for Amazon's satellite internet initiative, Project Leo. By absorbing Globalstar, Amazon gains immediate access to direct-to-cell (DTC) technology, which allows standard mobile devices to connect to satellites without the need for specialized hardware. This move allows Amazon to bypass the significant time and capital expenditure required to develop such technology internally. In addition to the technology, Amazon will inherit Globalstar's fleet of roughly two dozen satellites, increasing the size of the Amazon Leo constellation by approximately 10%. While this strengthens Amazon's position, the company remains far behind the industry leader, SpaceX, whose Starlink fleet exceeds 10,000 satellites and is already generating profit. Market reaction was immediate, with Amazon shares rising 4% and Globalstar jumping 9.3%. However, the news created uncertainty for Apple (AAPL), which currently utilizes Globalstar for its own satellite messaging services. Apple shares dipped 0.3% as investors weighed the implications of the company becoming dependent on a massive competitor for critical infrastructure.