Amazon Expands Satellite Ventures with Globalstar Acquisition

Amazon.com has announced a significant $11.57 billion acquisition of satellite company Globalstar, marking a major step forward in its burgeoning satellite business as it vies to challenge SpaceX's Starlink.

Following media reports about this potential deal, Globalstar's shares experienced a notable rise of over 9% in premarket trading, having already gained more than 6% in the past two weeks. Last year, the company's stock nearly doubled in value and saw an approximate 12% increase this year before news of the acquisition.

Under the terms of the agreement, Globalstar's shareholders can opt for either $90 in cash or 0.3210 shares of Amazon stock per Globalstar share. This acquisition allows Amazon to push forward with its goal of deploying around 3,200 satellites in low Earth orbit by 2029, meeting a regulatory requirement to have half of them operational by July 2026.