Amazon’s $11.6B Globalstar Deal Sends AST SpaceMobile Shares Down 11%
Amazon announced purchase of Globalstar for $11.6B, offering $90 per share or 0.32 stock, aiming to launch direct-to-device service in 2028 with key spectrum licenses. AST SpaceMobile shares slid nearly 11% to $88.57 on prospects of intensified competition from Amazon’s expanded satellite network.
1. Deal Overview and Strategic Benefits
Amazon is acquiring Globalstar for $11.6 billion in a mix of cash at $90 per share and 0.32 Amazon shares per Globalstar share, capped at $90. The transaction, expected to close in 2027, grants Amazon crucial radio frequency licenses and positions it to launch direct-to-device connectivity in 2028.
2. AST SpaceMobile Stock Reaction
On news of the acquisition, AST SpaceMobile shares dropped 11% to close at $88.57 as investors weighed the heightened competition from Amazon. The sell-off underscores concerns that Amazon’s entry could erode ASTS’s addressable market in the direct-to-device segment.
3. Direct-to-Device Market Competition
Amazon will join SpaceX’s Starlink, which operates over 10,000 satellites serving 10 million users, intensifying the battle for global mobile connectivity. AST SpaceMobile faces pressure to accelerate launches, secure partnerships, and leverage its own spectrum assets to maintain a competitive edge.