Amazon Eyes $11.6B Globalstar Deal to Bolster Kuiper Satellite Network
AMZN•Amazon agreed to acquire Globalstar for $11.6 billion, funding the deal with $5.8 billion in cash and the remainder in shares to expand its Kuiper direct-to-device satellite network. This move follows SpaceX’s $17 billion wireless spectrum purchase and a record 1.8 million SpaceX option contracts trading as its shares briefly eclipsed Amazon’s market cap.
1. Globalstar Acquisition Details
Amazon is set to purchase satellite operator Globalstar for $54 per share, valuing the transaction at approximately $11.6 billion. The consideration comprises $5.8 billion in cash and the remainder in newly issued Amazon shares, with $3.6 billion in financing provided by Deutsche Bank and Wells Fargo. The deal is expected to close next year once regulatory approvals are secured.
2. Kuiper Network Expansion
The acquisition will grant Amazon access to Globalstar’s spectrum and satellite infrastructure, accelerating Amazon’s Project Kuiper direct-to-device mobile service. This expansion targets pilots, mariners and remote-region users currently served by incumbent operators, positioning Amazon to capture share in the emerging satellite-based phone market.
3. Intensifying SpaceX Competition
SpaceX has invested $17 billion in wireless spectrum acquisitions from EchoStar to augment its Starlink network’s mobile capabilities. Following its record-breaking IPO that raised $86 billion and briefly valued the company above $2 trillion, SpaceX’s enhanced spectrum footprint directly challenges Amazon’s ambitions in satellite communications.
4. Market Reaction and Options Activity
Retail traders generated 1.8 million SpaceX option contracts on day one of trading, surpassing previous records. This surge in call buying reflects heightened FOMO and signals strong investor appetite for satellite-focused equities, underscoring the competitive pressure Amazon faces as it scales Kuiper.
