AMAZON BUYS GLOBALSTAR FOR $11.57B

Amazon will expand its satellite infrastructure through the acquisition of Globalstar, strengthening its low earth orbit (LEO) operations. The deal values each Globalstar share at $90, with Amazon offering flexibility in payment through cash, stock, or a combination of both. The transaction includes performance conditions tied to Globalstar's HIBLEO-4 replacement satellite program, meaning the deal's completion depends on meeting specific technical and operational benchmarks. The acquisition supports Amazon's broader ambitions in space-based connectivity. Apple has already partnered with Amazon to leverage LEO satellite technology for certain iPhone and Apple Watch services, demonstrating commercial demand for satellite-powered features. Globalstar operates a constellation of satellites enabling voice and data transmission globally. The company has positioned itself as a key player in emergency communications and IoT connectivity. Amazon's acquisition signals the tech giant's commitment to vertical integration in the satellite sector, rather than relying solely on third-party providers. The 2027 closing timeline provides Globalstar with operational runway to complete critical satellite deployments while Amazon conducts full due diligence. This extended timeline also allows both companies to align technical specifications and service offerings. The deal represents Amazon's significant bet on satellite infrastructure as a competitive differentiator. Combined with existing investments in Project Kuiper—Amazon's own satellite internet initiative—the Globalstar acquisition could accelerate deployment timelines and enhance service capabilities across Amazon's growing portfolio of satellite-dependent products and services. Regulatory approval will be required before the deal can close, though the transaction structure and technical nature suggest standard approval pathways.