US Stocks: Globalstar shares surge 10% as Amazon strikes $11.6 billion deal, rivaling Elon Musk's Starlink

Shares of Globalstar surged about 10% on Tuesday after Amazon announced plans to acquire the satellite communications company in a deal valued at $11.57 billion, marking a significant push by the tech giant into the fast-growing space-based internet market.

The stock reaction reflects investor optimism around Globalstar's strategic importance in Amazon’s broader satellite ambitions, particularly as the company looks to build out its low-Earth orbit (LEO) network to compete with Elon Musk's Starlink, which currently dominates the sector.

Amazon shares were also modestly higher, rising about 1%, as the market digested the implications of the deal and the company’s long-term infrastructure bets.


The acquisition gives Amazon immediate access to Globalstar's existing satellite network, which currently includes around two dozen satellites in orbit. More importantly, it provides a platform to accelerate deployment plans under Amazon’s Project Kuiper, which aims to launch roughly 3,200 satellites by 2029.

Regulatory timelines require a significant portion of these satellites to be operational by mid-2026, making the Globalstar deal strategically timed.

Under the terms of the agreement, Globalstar shareholders will have the option to receive $90 per share in cash or 0.321 shares of Amazon stock, offering flexibility depending on investor preference for liquidity or continued exposure to Amazon's growth story.

Globalstar has emerged as a key player in satellite communications, particularly through its partnership with Apple, where its network powers features such as Emergency SOS and location services on iPhones and Apple Watches. The company has also been expanding its satellite infrastructure, with plans to scale its constellation significantly beyond current levels.

The deal also reinforces Amazon's intent to build a vertically integrated satellite ecosystem, combining infrastructure, connectivity and consumer-facing services. While Amazon currently operates a relatively small number of satellites compared to competitors, this acquisition provides both scale and operational capabilities that could shorten its ramp-up timeline.

The broader satellite internet market has attracted intense competition and investment, with Starlink already serving millions of users globally and continuing to expand rapidly. Amazon’s entry, backed by its financial strength and cloud ecosystem, is expected to intensify this rivalry over the coming years.