Amazon.com Inc. shares jumped to $246.24, gaining 2.65%, after the company announced an $11.57 billion deal to acquire satellite communications firm Globalstar, a move that sharply expands its ambitions in space-based internet and direct-to-device connectivity. The rally came as investors weighed the strategic value of the acquisition, which positions Amazon more directly against Elon Musk’s Starlink in a market that is becoming one of the most closely watched battlegrounds in technology and telecom.
The deal is one of Amazon’s boldest moves in satellite infrastructure so far. While the company has already been building out its low-Earth-orbit network under Amazon Leo, the Globalstar acquisition gives it something that would have taken years to replicate organically: an existing satellite fleet, licensed spectrum, operational experience, enterprise and government communications capability, and a live connection to Apple’s satellite-based safety ecosystem. According to Reuters, the move is aimed at strengthening Amazon’s position in the rapidly evolving satellite internet market.
Amazon’s Globalstar deal puts key satellite assets in play
Under the merger agreement, Globalstar shareholders can elect to receive either $90.00 in cash or 0.3210 shares of Amazon common stock for each share they own, with a cap that limits aggregate cash elections to 40% of total Globalstar shares. Any excess cash election will automatically convert into stock consideration on a pro rata basis. The total consideration is also subject to a potential downward adjustment of up to $110 million if Globalstar fails to achieve certain operational milestones.
The transaction has already secured written approval from stockholders representing about 58% of the combined voting power of Globalstar’s outstanding common shares. The deal is expected to close in 2027, subject to regulatory approvals and satellite deployment milestones.
Globalstar operates about 24 satellites in low-Earth orbit and provides voice, data, and emergency communications services across enterprise and consumer markets. The company also powers Apple’s Emergency SOS feature, a capability highlighted in Apple’s ecosystem overview on Apple Newsroom.
Amazon said the acquisition will enable Amazon Leo to add direct-to-device (D2D) services, allowing smartphones to connect even outside traditional network coverage. This technology is expected to play a critical role in expanding global connectivity and emergency communication capabilities.
Why investors pushed AMZN higher
Amazon currently operates more than 200 satellites and plans to deploy around 3,200 satellites by 2029, with regulatory requirements mandating that nearly half be operational by July 2026. The Globalstar deal accelerates this expansion and strengthens Amazon’s ability to compete with Starlink, which already has about 10,000 satellites in orbit and serves more than 9 million users globally.
Another key driver behind the stock move is Amazon’s agreement with Apple to continue powering satellite-based features such as Emergency SOS and location sharing. This strengthens Amazon’s foothold in the consumer ecosystem while opening new monetization opportunities.
Amazon’s strong financial position also supports this aggressive expansion. The company recently reported quarterly revenue exceeding $213 billion, with operating income of about $25 billion and AWS revenue above $35 billion, giving it the scale to invest heavily in long-term infrastructure projects.
The stock’s 2.65% gain reflects investor confidence that this deal could become a major growth driver. Analysts view the acquisition as a strategic move that could unlock new revenue streams across telecom, enterprise services, and global connectivity.
While risks remain, including regulatory approvals and execution challenges, Amazon’s track record of scaling large businesses gives investors confidence in its long-term vision.
With AMZN closing at $246.24, up 2.65%, the market’s response suggests that Amazon’s $11.57 billion satellite bet could play a key role in shaping the future of global internet infrastructure.
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