Amazon.com Inc. has entered into a definitive agreement to acquire Globalstar Inc., the companies have announced. The merger is intended to integrate Globalstar’s assets into the Amazon Leo low Earth orbit satellite network, enabling direct-to-device (D2D) services and extending cellular coverage to areas without terrestrial infrastructure.

Under the terms of the agreement, Globalstar stockholders may elect to receive either $90.00 in cash per share or 0.3210 shares of Amazon common stock, with the stock value capped at $90.00. The cash portion of the transaction is limited to 40% of total shares. The deal, which is expected to close in 2027, has already received written consent from stockholders representing approximately 58% of Globalstar’s voting power.

The acquisition includes Globalstar’s satellite operations, infrastructure, and mobile satellite services (MSS) spectrum licenses. Amazon plans to deploy its own next-generation D2D system starting in 2028, which will offer voice, data, and messaging services. The combined network is expected to comprise thousands of satellites with the capacity to support hundreds of millions of endpoints globally.

Amazon also announced a separate agreement with Apple to power satellite services for the iPhone and Apple Watch. Amazon Leo will support existing emergency features, such as Emergency SOS via satellite, and collaborate on future services. Globalstar currently provides the infrastructure for Apple’s satellite messaging and roadside assistance features.

“We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime,” said Paul Jacobs, CEO, Globalstar. “For more than 30 years, Globalstar has executed on this vision through sustained, long-term investment in technological innovation, operational excellence, and development of globally harmonized spectrum across both satellite and terrestrial applications. The combination with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world.”

“By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places,” said Panos Panay, Senior Vice President of Devices & Services at Amazon.

Beginning in 2028, Amazon Leo will deploy its own next-generation D2D satellite system, allowing Amazon to deliver more advanced voice, data, and messaging services to mobile phones and other cellular devices. The Leo D2D system will offer substantially higher spectrum use and efficiency than legacy direct-to-cell systems, which translates into faster speeds and better performance for customers. It will also integrate seamlessly with Amazon’s first- and second-generation Leo systems, forming a powerful, unified network that combines fixed and mobile satellite services to support a wide range of customers and use cases. The complete Amazon Leo network will include thousands of advanced satellites in low Earth orbit and have enough capacity to support hundreds of millions of customer endpoints around the world.

The transaction remains subject to regulatory approvals and the achievement of specific operational milestones by Globalstar, including the deployment of replacement satellites. A downward adjustment of up to $110 million may be applied to the total consideration if these milestones are not met.

Read more at: Amazon to acquire Globalstar and expand Amazon Leo satellite network