Amazon Acquires Globalstar for $90 Per Share, Boosting Direct-to-Device Connectivity

Amazon has agreed to acquire Globalstar for over 23% premium in a deal that will see the e-commerce giant fold the satellite operator's assets into its Amazon Leo network. The acquisition is expected to boost direct-to-device connectivity, enabling smartphones and other devices to link directly to satellites without relying on traditional cellular networks.

The deal was announced yesterday, with Globalstar shareholders given the option to receive either $90 in cash per share or 0.3210 Amazon shares. The offer price implies a premium of over 23% compared to Globalstar's closing price on Monday.

Amazon plans to integrate Globalstar's satellite operations, spectrum holdings, and infrastructure into its Leo network, which aims to provide direct-to-device connectivity for billions of users worldwide. The company has also secured an agreement with Apple to enable satellite connectivity features on iPhones and Apple Watches.