Globalstar $GSAT jumps 9% after Amazon agrees $11.57B takeover

Globalstar $GSAT rose more than 9% in premarket trading on April 14 after Amazon said it would acquire the satellite operator in a transaction worth about $11.57 billion. CNBC reported that Amazon shares were up about 1% after the announcement, while the merger terms give Globalstar holders a choice between $90.00 in cash or 0.3210 shares of $AMZN common stock for each share they own.

Amazon’s official announcement says the acquisition will bring Globalstar’s satellite operations, infrastructure, and mobile-satellite-service spectrum licenses into Amazon Leo. Amazon said the combined platform will let it add direct-to-device service to its low Earth orbit network, extending voice, text, and data coverage beyond terrestrial mobile networks. The company said its own next-generation D2D system is expected to begin deployment in 2028.

The strategic logic is larger than one satellite operator. Amazon disclosed a parallel agreement with Apple so Amazon Leo can continue supporting current and future satellite features on iPhone and Apple Watch models. The same filing says shareholders representing about 58% of Globalstar’s voting power have already approved the merger by written consent, though the deal still needs regulatory approvals and specific HIBLEO-4 replacement-satellite milestones before an expected 2027 close. Amazon also reserved the right to reduce total consideration by as much as $110 million if Globalstar misses those operational milestones.

Amazon framed the tie-up as a scale move, not a passive spectrum purchase. In the company’s words, customers should get “faster, more reliable service in more places” once Globalstar’s assets are folded into Leo. The next catalysts are the merger review process, the future Form S-4 and related SEC materials, and whether Amazon can keep its 2028 D2D deployment target while integrating Globalstar’s existing fleet with a broader constellation plan.

Not investment advice. Verify all figures with primary sources before acting.