Space Stock Globalstar, Inc. (Nasdaq: GSAT) rockets to Amazon’s (Nasdaq: AMZN) acquisition

After the Amazon news, Globalstar, Inc. Trading at $80.30 +7.41 (+10.17%) from morning high of $80.78.Nasdaq: AMZN) Acquisition of the company. Amazon is also up this morning, trading at $247.48 +7.59 (+3.16%).

Today Amazon.com, Inc. (Nasdaq: AMZN) and Globalstar, Inc. (Nasdaq: GSAT) announced that they have entered into a definitive merger agreement under which Amazon will acquire Globalstar, enabling Amazon LEO to add direct-to-device (D2D) services to its low Earth orbit satellite network and expand cellular coverage to customers beyond the reach of terrestrial networks. Additionally, Amazon and Apple announced an agreement for Amazon LEO to power satellite services for the iPhone and Apple Watch 1, including emergency SOS via satellite. The new capabilities are part of Amazon’s long-term vision for space-based connectivity, and Amazon plans to work with mobile network operators (MNOs) and additional partners to deliver on that vision and expand reliable, high-speed connectivity to customers no matter where they are in the world.

“There are billions of customers living, traveling, and working in places beyond the reach of existing networks, and we introduced Amazon Leo to help bridge that divide,” said Panos Panay, Amazon’s senior vice president of Devices and Services. “By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer passion and innovation, customers can expect faster, more reliable service in more locations – keeping them connected to the people and things that matter most. We’re excited to support Apple users through the LEO D2D system and look forward to working with mobile network partners to help extend coverage to every corner of the planet.”

Globalstar is a leading mobile satellite service (MSS) operator, a leader in non-geostationary orbit (NGSO) satellites and D2D technology, and a provider of critical and emergency communications to customers around the world. As part of the agreement, Amazon will acquire Globalstar’s existing satellite operations, infrastructure and assets, including MSS spectrum licenses with global authorities.

Combining Globalstar’s spectrum and established MSS capabilities with the scale, performance and reach of Amazon LEO will enable Amazon to provide continuous connectivity for consumer, enterprise and government customers around the world – whether they are living and working in remote areas or simply moving in and out of traditional cellular networks. Globalstar’s existing satellite fleet and its new satellites with expanded capabilities will work with the Amazon LEO broadband system and Amazon’s planned direct-to-device satellite system.

“We have long believed that low Earth orbit satellite constellations provide the most effective way to connect users and devices anywhere, anytime,” said Paul Jacobs, Globalstar CEO. “For more than 30 years, Globalstar has delivered on this vision through sustained, long-term investment in technological innovation, operational excellence and the development of globally harmonized spectrum in both satellite and terrestrial applications. The combination with Amazon LEO will drive innovations in digital connectivity that will benefit our customers and move us toward a more intelligent, constantly connected world.”

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