Amazon to acquire Globalstar in $90 per share satellite deal

Tuesday 14 April 2026 - 16:20

By: Dakir Madiha

Amazon to acquire Globalstar in $90 per share satellite deal

Amazon and Globalstar have reached a definitive merger agreement that will reshape the satellite communications market. Under the terms, Globalstar shareholders will receive either 90 dollars per share in cash or 0.3210 Amazon shares, with cash elections capped at 40 percent of total shares. The deal follows weeks of negotiations and signals Amazon’s push to expand its space-based connectivity services.

The acquisition strengthens Amazon’s low Earth orbit network, known as Amazon Leo, by adding direct-to-device capabilities and extending cellular coverage beyond traditional ground infrastructure. In a parallel agreement, Apple will partner with Amazon to integrate satellite services into supported iPhone and Apple Watch models. This includes emergency SOS features and satellite messaging, expanding the reach of existing services powered by Globalstar’s network.

The deal had been in development for months, with earlier reports valuing Globalstar at about 8.8 billion dollars. Apple’s 20 percent stake in Globalstar, secured through a 1.5 billion dollar investment in 2024, added complexity to negotiations. Apple also controls a large share of Globalstar’s network capacity for iPhone satellite features. News of a potential agreement had already driven a sharp rise in Globalstar’s stock ahead of the official announcement.

Amazon executives said the integration will improve service speed, reliability, and geographic coverage. The agreement also ensures continuity for existing Apple users. Amazon will continue supporting current satellite-enabled iPhone and Apple Watch models while collaborating with Apple on future services built on the expanded Amazon Leo network.

The acquisition accelerates Amazon’s ambition to compete with SpaceX and its Starlink network, which operates around 10,000 satellites and serves more than 10 million users. Amazon Leo currently has about 240 satellites in orbit and targets a commercial launch around mid-2026, though the company may miss a regulatory deadline set by the FCC to deploy half of its planned 3,200-satellite constellation.

Looking ahead, Amazon plans to roll out a next-generation direct-to-device satellite system by 2028, offering voice, data, and messaging services directly to mobile phones. Shareholders representing about 58 percent of Globalstar’s voting rights have already approved the transaction. The deal is expected to close in 2027, pending regulatory approvals, marking a major step in the race to expand global satellite connectivity.