Globalstar, Inc. (NASDAQ:GSAT) shares are trading higher Tuesday after the company announced it has entered into a definitive merger agreement to be acquired by Amazon.com, Inc. (NASDAQ:AMZN).

Acquisition Details

Amazon and Globalstar said they have entered into a definitive merger agreement under which Amazon will acquire the satellite communications company, enabling Amazon's low Earth orbit satellite network to add direct-to-device services and extend connectivity beyond traditional cellular coverage. 

The acquisition includes Globalstar's satellite operations, infrastructure and spectrum assets, which Amazon plans to integrate with its Amazon Leo satellite network to support consumer, enterprise and government connectivity worldwide. 

Expanding Satellite Capabilities

Amazon said the combination will allow it to deliver voice, data and messaging services directly to mobile devices, with a next-generation D2D satellite system expected to begin deployment in 2028. 

The companies noted the system is designed to provide faster speeds, improved performance and broader coverage, particularly in areas where terrestrial networks are unavailable or unreliable. 

Transaction Terms

Under the agreement, Globalstar shareholders can elect to receive $90.00 per share in cash or 0.3210 shares of Amazon stock, with total consideration subject to proration and certain adjustments. 

The transaction has already received approval from shareholders representing approximately 58% of Globalstar's voting power and is expected to close in 2027, pending regulatory approvals and other conditions.

Other space-focused stocks may also be moving higher following the news, including AST SpaceMobile, Inc. (NASDAQ:ASTS) and Planet Labs PBC (NYSE:PL).

Globalstar Shares Move Higher

GSAT Price Action: At the time of writing, Globalstar shares are trading 9.00% higher at $79.46, according to data from Benzinga Pro.

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