Amazon Deal Gives Globalstar a Boost Amid Space Stock Rout

Globalstar (GSAT) emerged as an outlier in a brutal July for space stocks, rising nearly 3% while AST SpaceMobile, Rocket Lab, and SpaceX each lost more than a third of their value. The sector's downturn was largely driven by investors reassessing high valuations, long deployment timelines, and the billions required to build and operate large constellations.

However, Globalstar had a clearer reference value due to Amazon's $11.6 billion takeover agreement. Under this deal, shareholders can elect to receive either $90 in cash or 0.3210 Amazon shares for each share of Globalstar, with the stock consideration capped at $90 and subject to proration.

The acquisition would give Amazon Globalstar's spectrum, satellites, ground network, and direct-to-device experience. This is significant because Amazon recently proposed a constellation of up to 5,105 satellites for direct-to-device voice, messaging, data, and emergency services, which would use Globalstar's licensed mobile satellite spectrum.

The deal gives Amazon a clear path forward in its plans to expand its satellite offerings, placing it more directly against SpaceX, AST SpaceMobile, and other satellite-to-phone providers. With the acquisition expected to close in 2027 pending regulatory approvals and satellite-related milestones, investors appear optimistic about Globalstar's future.