Amazon (AMZN) Stock Climbs on $11.6B Globalstar Acquisition to Challenge Starlink

Key Highlights Amazon is acquiring Globalstar ($GSAT) in an $11.6 billion transaction, paying $90 per share through cash and stock The acquisition grants Amazon critical radio spectrum for launching a direct-to-smartphone satellite service by 2028 Globalstar shares soared 9.6% while Amazon climbed 3.8%; competitor AST SpaceMobile dropped nearly 11% Apple’s Emergency SOS satellite functionality will migrate to Amazon’s Leo constellation This marks Amazon’s second-biggest acquisition in company history, with completion anticipated in 2027 following regulatory clearance Amazon has announced plans to acquire satellite operator Globalstar through an $11.6 billion transaction, intensifying competition with Elon Musk’s Starlink in the rapidly expanding satellite communications sector. The transaction, revealed Tuesday, prices Globalstar at $90 per share — representing a premium exceeding 31% over its April 1 closing value and approximately 117% above its October pricing. Globalstar investors may select between $90 cash per share or 0.3210 shares of Amazon stock. Cash payments are limited to 40% of the overall transaction value. Amazon.com, Inc., AMZN Amazon stock advanced 3.8% to $249.02 following the announcement. Globalstar jumped 9.6% to $79.91. MDA Space, serving as Globalstar’s principal contractor, gained 9%. AST SpaceMobile, a direct-to-device competitor, tumbled nearly 11% to $88.57. The transaction is projected to finalize in 2027, contingent upon FCC regulatory clearance and achieving specific deployment targets. This represents Amazon’s second-largest corporate acquisition, trailing only its $13.7 billion Whole Foods transaction from 2017. Spectrum Access Drives Strategic Value Globalstar maintains just a few dozen operational satellites currently, but the satellite count isn’t the strategic priority. The core asset is spectrum — FCC-authorized radio frequencies essential for delivering connectivity directly to standard smartphones. “Amazon has now repeatedly...