BNP Paribas analyst Nick Jones views Amazon.com Inc's (NASDAQ:AMZN) planned ~$11.6 billion acquisition of Globalstar, Inc (NASDAQ:GSAT) as a strategic move that strengthens its satellite ambitions while remaining financially manageable given Amazon's scale.

Strategic Expansion With D2D And Apple Partnership

Jones noted the deal accelerates Amazon Leo's commercialization by adding direct-to-device capabilities and leveraging Globalstar's spectrum and infrastructure.

He added that the Apple Inc (NASDAQ:AAPL) partnership, including satellite connectivity for iPhone and Apple Watch, validates demand and positions Amazon more competitively in satellite communications.

Minimal Near-Term Financial Impact Despite Scale Gap

Jones noted that Globalstar generated $273 million in 2025 revenue with a net loss of $9 million, compared with Amazon's $716.9 billion in revenue and $77.7 billion in net income, implying a negligible impact on Amazon's income statement.

He attributed this to the capital-intensive nature of the business and the longer deployment timeline.

Strong Balance Sheet And Synergy Potential

Jones highlighted that Amazon's $123 billion in cash and equivalents, along with more than $50 billion raised in the first quarter of 2026, leaves it well positioned to fund the deal alongside its planned $200 billion in 2026 capital expenditures.

He added that Amazon can drive cost synergies between Globalstar and Amazon Leo, potentially improving profitability earlier, while the market already reflects a high probability of deal completion.

Price Action: Amazon.com shares were down 0.19% at $248.54, and Globalstar shares were up 0.10% at $79.98 during premarket trading on Wednesday, according to Benzinga Pro data.

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