SCHEDULE: Amazon to Acquire Globalstar in $90 Per Share Deal

Globalstar, Inc. has entered into a definitive merger agreement to be acquired by Amazon.com, Inc. for $90 per share in cash or stock.

Summary

• Globalstar, Inc. entered into a definitive merger agreement with Amazon.com, Inc. on April 13, 2026.
• The transaction involves a two-step merger process where Globalstar will become a wholly owned subsidiary of Amazon.
• Shareholders may elect to receive $90.00 in cash per share (subject to adjustments) or a specific amount of Amazon common stock based on an exchange ratio.
• The exchange ratio is determined by the volume-weighted average price of Amazon stock over a 20-day period ending two days prior to closing.
• A per-share adjustment amount may apply based on potential payments to Apple Inc. related to operational milestones, capped at $110 million.
• Major stockholders, led by James Monroe III, have signed a support agreement to vote in favor of the merger.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a highly positive development for shareholders, as the acquisition by a major entity like Amazon typically provides a premium valuation and clear exit strategy.

Positives

• The merger offers a significant liquidity event for shareholders.
• The deal provides flexibility for shareholders to choose between cash or Amazon equity.
• The transaction has received unanimous approval from the Globalstar Special Committee and Board of Directors.
• Major shareholders representing a majority of voting power have committed to supporting the transaction.

Negatives

• The merger consideration is subject to potential downward adjustments based on operational milestone payments to Apple Inc.
• The deal structure involves complex exchange ratio calculations based on future Amazon stock performance.
• Globalstar will be de-listed from The Nasdaq Stock Market upon completion of the merger.

Risks

• Failure to achieve specific operational milestones could trigger payments to Apple Inc., reducing the per-share merger consideration.
• The value of the stock consideration is subject to market volatility in Amazon's share price.
• The merger is subject to customary closing conditions and regulatory approvals.
• The potential for legal challenges or delays in the merger process.

Future Outlook

Upon the effective time of the merger, Globalstar will become a wholly owned subsidiary of Amazon, and its securities will be de-listed from Nasdaq.

Management Comments

• The Globalstar Special Committee determined that the merger is fair to, and in the best interests of, the company and its stockholders.
• The Board of Directors has unanimously recommended that stockholders adopt the merger agreement.

Industry Context

StockSavvy.ai notes that this acquisition represents a significant consolidation in the satellite communications sector, aligning with broader trends of major technology conglomerates integrating satellite infrastructure to bolster global connectivity and cloud services.

Comparison to Industry Standards

• The deal structure follows standard M&A practices for public company acquisitions, including the use of stockholder support agreements to ensure deal certainty.
• The inclusion of a per-share adjustment mechanism linked to operational milestones is a common feature in technology-heavy acquisitions to mitigate integration and performance risks.

Corporate Governance

Related Party Transactions

• The reporting persons, including James Monroe III, are major shareholders and have entered into a support agreement with Amazon.

Stakeholder Impact

• Shareholders will receive cash or Amazon stock in exchange for their holdings.
• Employees may face integration-related changes following the acquisition.
• Creditors and suppliers will be subject to the terms of the merger agreement.

Next Steps

• Stockholders to deliver written consent approving the merger.
• Completion of regulatory filings and approvals.
• Finalization of the merger and subsequent de-listing from Nasdaq.

Key Dates

Recommendation

The acquisition offer of $90 per share represents a definitive exit strategy for investors, typically resulting in the stock price trading near the offer price until the deal closes.

Keywords

Globalstar, Amazon, Merger, Acquisition, Satellite, James Monroe III, Stockholder Support Agreement