Amazon Acquires Globalstar for $11.6 Billion
Amazon.com (NASDAQ: AMZN) is set to acquire Globalstar (NASDAQ: GSAT) for $11.6 billion, with the deal announced today. Amazon’s offer is priced at $90 per share, reflecting a 23% premium over Globalstar’s previous valuation as of yesterday. The transaction is expected to close in 2027, pending regulatory approval.
This acquisition aims to enhance Amazon’s satellite capabilities by adding Globalstar’s approximately two dozen satellites to its Amazon Leo satellite constellation. In the market response, Amazon’s stock rose 4%, while Globalstar saw a 9.3% increase.
Globalstar plays a significant role in providing Apple’s direct-to-cell communications for iPhones and Apple Watches. This partnership raises questions for Apple, as it will increasingly rely on a much larger competitor, Amazon, for its key services.
