Amazon has entered into a definitive merger agreement to acquire Globalstar, Inc., a mobile satellite services operator. The acquisition is intended to integrate Globalstar's satellites, spectrum, and infrastructure into Amazon's "Amazon Leo" low Earth orbit (LEO) network, enabling the addition of direct-to-device (D2D) services. Concurrently, Amazon announced a new agreement with Apple to power satellite services for supported iPhone and Apple Watch models.
Key Details
- Transaction Terms: Globalstar stockholders will elect to receive either $90.00 in cash or 0.3210 shares of Amazon common stock (value capped at $90.00) per share, subject to a proration mechanism capping aggregate cash at 40% of the total shares.
- Timeline & Approval: The transaction is expected to close in 2027, contingent upon regulatory approvals and Globalstar achieving certain satellite milestones. Stockholders with approximately 58% of Globalstar's voting power have already approved the deal.
- Apple Partnership: Amazon will power satellite connectivity for current and future Apple iPhone and Apple Watch features, including Emergency SOS, continuing the service currently provided by Globalstar and expanding it with the future Amazon Leo network.