New York, June 1, 2026, 12:04 (EDT)
Globalstar shares were lower midday Monday, staying under the headline $90-a-share cash option in the Amazon.com buyout. Amazon shares also dropped, taking a toll on the stock part of the deal. Globalstar was at $83.31, off 1.1%. Amazon traded at $264.18, down 2.4%.
This is important now because the deal is not a pure cash offer. Globalstar holders can choose $90 in cash or 0.3210 Amazon shares for each Globalstar share, but the shares are capped at $90 in value. Cash elections are limited to 40% of Globalstar shares. If more shareholders want cash, proration will scale it back.
At midday, 0.3210 shares of Amazon traded at about $84.80. The difference between Globalstar’s price and the deal’s implied value — the merger spread — shows investors are treating the stock as a shifting Amazon-linked bet and not as a straightforward $90 payout.
Nasdaq traded regular hours Monday, with markets open from 9:30 a.m. to 4 p.m. Eastern. The exchange’s 2026 holiday schedule puts Memorial Day off on May 25 and Juneteenth on June 19, but not June 1.
No new statement showed up on Globalstar’s investor site this weekend. The most recent post dated May 15 said the HIBLEO-4 replenishment satellite launch with SpaceX, set for May 17, was delayed as teams got the satellites ready. Globalstar said they’d announce a new launch date once it’s settled.
Amazon and Globalstar said on April 14 that Amazon will buy Globalstar to bring direct-to-device (D2D) services to the Amazon Leo low Earth orbit network. D2D lets a device like a phone link directly to a satellite, skipping cell towers. Low Earth orbit, or LEO, is when satellites travel closer to the ground than geostationary satellites and have less lag.
Panos Panay, Amazon’s senior vice president of Devices & Services, said at the deal’s announcement that “There are billions of customers” outside established networks. Amazon added that it struck a deal with Apple to use Amazon Leo for satellite features on iPhone and Apple Watch, like Emergency SOS via satellite. US Press Center
Globalstar CEO Paul Jacobs called the deal a step forward to “connect users and devices anywhere and anytime.” In May, Jacobs said demand picked up in the first quarter from government, defense, and private wireless customers. He described the Amazon agreement as a milestone for Globalstar’s strategy. Business Wire
Globalstar posted stronger first-quarter revenue, with the top line rising 17% to $70.1 million. Income from operations hit $8.2 million after an operating loss a year ago. Net loss came in at $17.4 million, nearly flat against the $17.3 million loss in the same period last year.
SpaceX’s Starlink sets the pace in this sector. Reuters wrote in April that Amazon’s Globalstar agreement brings about two dozen satellites to its lineup of more than 200, but Starlink has put up over 10,000 satellites. Gregory Radisic, senior teaching fellow and lecturer at Bond University, told Reuters the gap with SpaceX won’t close for Amazon unless it can move on deployments and launches more quickly: “structural, not just numerical.” Reuters
Some analysts called the deal a play for spectrum and future potential instead of near-term profits. Rachel Kong at ABI Research told Via Satellite the deal gives Amazon quick entry to globally harmonized MSS spectrum. But Armand Musey at Summit Ridge Group said it’s still hard to gauge how big the D2D market could get.
But there’s still risk in the deal. The transaction should close in 2027, but approvals are still needed and milestones on the HIBLEO-4 replacement satellite have to be met. The price tag could drop by up to $110 million if Globalstar misses some of those steps. If Amazon shares fall more, or if there are any delays on launches or approvals, Globalstar’s spread to the cash election might actually get wider.
At the moment, Globalstar is moving more like a merger play linked to Amazon’s stock than a typical satellite company posting earnings. If Amazon gets near $90, that would signal traders see a clearer way for the deal to finish. A weaker Amazon price suggests they want a better payout for hanging on.
