Amazon's stock price rose 2.76% during the session after the company announced that it would acquire Globalstar for US$11.57 billion, with a per share offer of US$90 in cash or 0.3210 Amazon shares (the cash option is capped at 40% of the total shares). Globalstar shares rose 7.01% intraday. The transaction is expected to close in 2027, pending regulatory approvals.
Amazon Leo plans to deploy 3,200 low-Earth orbit satellites by 2029, about half of which must be in place by a regulatory deadline of July 2026. Globalstar already operates a working network of approximately 24 satellites and has plans to expand to 54 satellites with support from Apple. Globalstar also brings spectrum usage rights in L/S band, Band 53/n53 and C band. Starlink already serves more than 9 million users worldwide on approximately 10,000 satellites.
In a parallel deal, Amazon signed a deal with Apple to continue powering emergency SOS and Find My Satellite features for iPhone and Apple Watch, resolving what had been the biggest uncertainty in the deal given Apple's $1.5 billion investment in Globalstar. The deal structure includes a potential reduction of up to $110 million in value if Globalstar fails to meet operating milestones.