Shares of **Globalstar (NASDAQ: GSAT)** surged on Tuesday after the satellite operator announced a deal to be acquired by **Amazon (NASDAQ: AMZN)**. Under the agreement, Globalstar’s shareholders can choose to receive either $90 in cash or 0.3210 shares of Amazon for each Globalstar share owned, valuing the company at over **$11 billion**. The transaction is anticipated to close in **2027**, pending regulatory approvals and satellite deployment milestones.
This acquisition aims to enhance Amazon’s satellite network, particularly as it seeks to compete with **Starlink**, operated by Elon Musk’s **SpaceX**, which currently boasts over **10,000 satellites** and **9 million customers**. In contrast, Amazon has launched approximately **240 Leo satellites** and is just beginning to onboard customers.
Additionally, the buyout will enable Amazon to provide direct-to-device (D2D) cellular services and further its satellite initiatives in conjunction with **Apple**, which holds a **20% stake in Globalstar**. As part of the deal, Amazon has committed to supply Apple with satellite services for its devices, consolidating their collaborative efforts in the satellite communications sector.
