Amazon has agreed to acquire Globalstar for approximately $11.6bn, in a move to expand its Amazon Leo low Earth orbit (LEO) satellite network and enable direct-to-device (D2D) services.
Listed on Nasdaq, Globalstar is a mobile satellite services (MSS) operator with experience in non-geostationary orbit (NGSO) satellites and D2D technology. The company provides communications services, including support for critical and emergency situations, to customers globally.
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The acquisition of Globalstar will allow Amazon to extend cellular coverage to areas beyond the reach of existing terrestrial networks.
Under the terms of the deal, Globalstar stockholders can choose to receive either $90 in cash or 0.3210 shares of Amazon stock per Globalstar share, subject to a 40% threshold for cash elections. Any excess cash elections will be converted to stock on a pro rata basis.
The total consideration may be reduced by up to $110m if Globalstar does not meet specific operational milestones.
Globalstar shareholders representing nearly 58% of combined voting power have already approved the deal. Completion of the acquisition is targeted for 2027, pending regulatory clearance and the achievement of satellite deployment goals.
Through this transaction, Amazon will acquire Globalstar’s satellite assets, infrastructure, and spectrum licences. This will strengthen Amazon’s ability to deliver connectivity for consumer, enterprise, and governmental users in remote locations.
Globalstar’s existing and future satellite systems will operate alongside Amazon Leo’s broadband constellation and planned D2D network.
Amazon Leo’s next-generation D2D satellite system, scheduled for deployment from 2028, will support voice, data, and messaging for mobile and cellular devices. The system is expected to deliver increased spectrum efficiency and operate as part of an integrated network including Amazon Leo’s previous satellite generations.
Amazon devices and services senior vice president Panos Panay said: “There are billions of customers out there living, travelling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide.
“By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places—keeping them connected to the people and things that matter most.”
In parallel with acquiring Globalstar, Amazon has agreed with Apple to continue and expand satellite connectivity services for current and future iPhone and Apple Watch models.
Globalstar’s satellites, manufactured by MDA Space, currently underpin Apple’s satellite functions on recent iPhone and Apple Watch products. Under the new arrangement, Amazon Leo will support these services and work with Apple on future offerings.
The expanded network aims to enhance connectivity options and resilience, particularly in areas where terrestrial networks are unavailable or disrupted.
Amazon plans to collaborate with mobile network operators and additional partners to facilitate broader deployment and to address coverage gaps.
The company states that these agreements support efforts to address the digital divide and enable emergency and everyday connectivity needs for various sectors, including public safety and remote operations.
Globalstar CEO Paul Jacobs said: “The combination with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world.”
The Amazon Leo network is expected to consist of thousands of satellites to support hundreds of millions of endpoints worldwide.
