Space & Satellites

Amazon Buys Globalstar and Gets a Key Apple Satellite Contract

Amazon is buying Globalstar, giving it satellite spectrum and a key Apple satellite-phone contract.

TopicSpace Published2026-05-02 CheckSource checked Sources02 linked

The Short Version

Amazon is buying Globalstar, giving it satellite spectrum and a key Apple satellite-phone contract.

What to Watch Next

Watch regulatory approvals, satellite milestones, and whether rival satellite firms respond.

Source Trail

SEC filing + company statement

Amazon Leo and Globalstar logos lockup on a black background

Image: Amazon News

The News

Amazon (AMZN) and Globalstar (GSAT) signed a definitive merger agreement on April 14, 2026 under which Amazon acquires Globalstar at $90.00 per share, with consideration delivered as cash or 0.3210 Amazon shares per Globalstar share, capped at 40% aggregate cash with proration. The transaction is subject to a maximum $110 million downward consideration adjustment tied to HIBLEO-4 replacement satellite milestones. Globalstar stockholders representing approximately 58% of voting power approved the transaction by written consent the same day. Amazon and Apple (AAPL) signed a concurrent agreement for Amazon Leo to power iPhone and Apple Watch satellite services, including Emergency SOS via satellite. Closing is expected in 2027 subject to regulatory approval.

The Bottom Line for Investors

Satellite service on phones usually depends on separate deals between satellite companies, phone makers, and wireless carriers. Amazon is simplifying that chain by buying Globalstar, taking over its satellite network and spectrum rights, and signing Apple as a major customer. The investor question is whether independent satellite companies can keep strong pricing when Amazon owns more of the system.

Who Is Affected

Amazon (AMZN) acquires Globalstar (GSAT) at $90.00 per share through cash or 0.3210 Amazon shares, with the cash component capped at 40% of total Globalstar shares. Apple (AAPL) is contractually bound to Amazon Leo for satellite features on iPhone 14 or later and Apple Watch Ultra 3, and for future satellite services on the expanded Amazon Leo network. MDA Space remains the manufacturer of the replacement constellation that Amazon inherits at closing, including the HIBLEO-4 satellites whose milestone status gates the maximum $110 million consideration adjustment. Globalstar's existing non-Apple customer book transfers to Amazon ownership at closing, subject to receipt of regulatory approvals expected through 2027.

Facts We Checked

Amazon and Globalstar entered into a definitive merger agreement under which Amazon will acquire Globalstar, enabling Amazon Leo to add direct-to-device (D2D) services to its low Earth orbit satellite network. U.S. Securities and Exchange Commission (Globalstar 8-K, Ex. 99.1)
Globalstar stockholders may elect, for each share, either $90.00 in cash or 0.3210 shares of Amazon common stock with a value capped at $90.00 per share. U.S. Securities and Exchange Commission (Globalstar 8-K, Ex. 99.1)
The consideration is subject to a proration mechanism that caps aggregate cash elections to a maximum of 40% of total Globalstar shares, with excess cash elections automatically converted into stock on a pro rata basis. U.S. Securities and Exchange Commission (Globalstar 8-K, Ex. 99.1)
The total transaction consideration is subject to a downward adjustment of a maximum $110 million if Globalstar does not achieve certain operational milestones. U.S. Securities and Exchange Commission (Globalstar 8-K, Ex. 99.1)
Globalstar stockholders holding approximately 58% of the combined voting power approved the transaction by written consent. U.S. Securities and Exchange Commission (Globalstar 8-K, Ex. 99.1)
The transaction is expected to close in 2027, subject to receipt of regulatory approvals and the achievement by Globalstar of certain HIBLEO-4 replacement satellite milestones. U.S. Securities and Exchange Commission (Globalstar 8-K, Ex. 99.1)
Amazon will acquire Globalstar's existing satellite operations, infrastructure, and assets, including MSS spectrum licenses with global authorizations. U.S. Securities and Exchange Commission (Globalstar 8-K, Ex. 99.1)
Amazon and Apple signed an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch, including Emergency SOS via satellite. U.S. Securities and Exchange Commission (Globalstar 8-K, Ex. 99.1)
Beginning in 2028, Amazon Leo will deploy its own next-generation D2D satellite system, offering substantially higher spectrum use and efficiency than legacy direct-to-cell systems. Amazon (aboutamazon.com — company news)
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. Amazon (aboutamazon.com — company news)
Globalstar currently partners with Apple to power satellite service on iPhone 14 or later, as well as Apple Watch Ultra 3, allowing users to text emergency services, message friends and family, request roadside assistance, and share their location. Amazon (aboutamazon.com — company news)
Globalstar's existing and planned upcoming low Earth orbit satellite constellations are being manufactured by MDA Space, and Amazon will continue to support iPhone and Apple Watch models currently using them. Amazon (aboutamazon.com — company news)

What Could Happen Next

AST SpaceMobile, EchoStar, Iridium, and Viasat now face a bigger competitor in phone-to-satellite service. Amazon would own Globalstar's satellites and spectrum, while Apple would use Amazon Leo for satellite features on iPhone 14 or later and Apple Watch Ultra 3. Wireless carriers such as T-Mobile, Verizon, and AT&T may have to negotiate more directly with Amazon for this kind of coverage.

What to Watch Next

Amazon Form S-4 registration statement filing with the SEC, including the prospectus and Globalstar Schedule 14C information statement, expected within 60-120 days of announcement.
FCC and foreign regulator filings on the change of control of Globalstar's MSS spectrum licenses, expected in 2026 H2.
Quarterly disclosure of HIBLEO-4 replacement satellite milestone status between announcement and 2027 closing, relevant to the maximum $110 million downward consideration adjustment.
Public statements or filings from AST SpaceMobile, EchoStar, Iridium, or Viasat on D2D partnerships, MSS spectrum strategy, or MNO contracts within 30-90 days.
Disclosure on whether existing Globalstar non-Apple customer contracts contain change-of-control provisions triggered by the merger.

What Not to Assume

This filing does not establish revenue timing for Amazon Leo D2D commercial service, which is targeted to begin in 2028. The 58 percent written-consent approval covers Globalstar stockholder action only; it does not constitute regulatory clearance for the change of control of MSS spectrum licenses, which remains a closing condition. This article does not assess valuation, share price direction, or relative attractiveness of any named security.

Sources Used

U.S. Securities and Exchange Commission (Globalstar 8-K, Ex. 99.1) — SEC filing
Amazon (aboutamazon.com — company news) — company statement

End of article · 2026-05-02