Amazon Acquires Globalstar for $11.5 Billion
Amazon has announced its acquisition of Globalstar for over $11.5 billion, valuing the company at approximately $90 per share. The deal, which will require approval from the U.S. Federal Communications Commission (FCC), is expected to close in 2027. As of now, Globalstar’s shares have surged nearly 10% but are still trading around $80.
Globalstar operates 24 low-Earth orbit satellites, providing essential phone and data services in underserved areas. Amazon’s plan includes integrating Globalstar’s operations and infrastructure with its existing low-Earth orbit satellite fleet, known as Leo. Amazon has been falling behind its main competitor, SpaceX’s Starlink, which currently has nearly 10,000 satellites in orbit and plans to expand to 42,000. Despite this, Amazon intends to launch its Leo network later this year and has secured commitments from clients like Delta Air Lines for future Wi-Fi services on aircraft starting in 2028.
