Globalstar (GSAT) is trading sharply higher after the company filed an 8-K detailing an Agreement and Plan of Merger with Amazon, laying out a takeout structure that effectively anchors investor expectations around a $90-per-share value cap. The deal disclosure is the clear catalyst driving the outsized move as investors reprice the stock toward the stated consideration.

Under the announced structure, Globalstar stockholders can elect either $90.00 per share in cash or Amazon stock subject to a value cap of $90.00 per share, with a proration mechanism that limits total cash elections (excess cash elections convert to stock consideration). Globalstar also disclosed that a large holder group representing about 57.6% of outstanding common shares executed written consent adopting the merger agreement, reducing execution risk on the shareholder-vote pathway.

In the same 8-K, Globalstar disclosed an amendment to its 2024 prepayment agreement that increases the maximum High Power Infrastructure Prepayment Balance by approximately $468 million, taking the aggregate maximum to about $1.58 billion. The filing also disclosed amendments to certain service milestones via an updated statement of work, which investors may read as incremental support for the company’s funded buildout and delivery schedule.

The companies indicated the transaction is expected to close in 2027, subject to regulatory approvals and the achievement of specified satellite-related milestones. For GSAT traders, the near-term focus is likely to be the spread between the current trading price and the $90 value cap, plus any new detail that emerges in deal documents, regulatory timelines, and milestone progress updates.