Amazon to buy Globalstar for $11.6B

Amazon has agreed to buy Globalstar for about $11.6 billion, folding a longtime satellite operator into its Amazon Leo network. (aboutamazon.com) The companies announced the merger agreement on April 14, 2026. Globalstar shareholders can elect $90 in cash or 0.3210 shares of Amazon stock for each share they own, subject to proration and other adjustments. (investors.globalstar.com) Globalstar already runs satellites, ground infrastructure, and mobile-satellite spectrum licenses. Amazon said those assets will let Amazon Leo add direct-to-device service, which connects ordinary phones to satellites when cell towers are out of reach. (aboutamazon.com) Amazon said the combined system will be used to extend voice, text, and data service beyond terrestrial cellular networks through carrier partnerships. The company also said Globalstar’s current fleet and planned satellites will operate alongside Amazon’s own network. (aboutamazon.com) The deal also reshapes Apple’s satellite plans. Amazon and Apple said Amazon Leo will power satellite features on supported iPhone and Apple Watch models, including Emergency SOS via satellite. (aboutamazon.com) That matters because Globalstar has been central to Apple’s off-grid emergency features since 2022, when Apple said it was investing $450 million and sending most of that funding to Globalstar for satellite-network and ground-station upgrades. (apple.com) For Amazon, the purchase is a shortcut in a market where it has been building from behind. Amazon unveiled its low Earth orbit project in 2019, won Federal Communications Commission authorization in 2020, and later rebranded Project Kuiper as Amazon Leo. (fcc.gov) (aboutamazon.com) The acquisition also gives Amazon spectrum that is already licensed and a satellite operator that is already serving customers. Globalstar told investors its spectrum portfolio includes L-band, S-band, Band 53 and n53, and C-band options tied to future direct-to-device use. (investors.globalstar.com) Investors treated the announcement as material for both companies. Globalstar shares jumped more than 9% in premarket trading on April 14, while Amazon shares rose about 1%, according to CNBC. (cnbc.com) Globalstar said no separate shareholder vote is required because holders of more than a majority of voting power already approved the deal by written consent. The companies said they expect the transaction to close in 2027, pending antitrust, foreign-investment, and telecommunications approvals. (investors.globalstar.com)