FCC clears Amazon-Globalstar deal: why GSAT still trades below $90

Updated 29 Oct 2026 from live prices and SEC filings

The FCC approved Amazon Leo's $11.5 billion Globalstar purchase on 27 October. The headline price is $90, but with Amazon at $254.60 the stock option is worth $81.73 and cash is capped at 40%, so the realistic mix is worth about $85.04, close to GSAT's $84.07 close.

What happened

On 27 October 2026 the FCC's Space Bureau approved Amazon Leo's application to acquire about 25 megahertz of Globalstar's internationally harmonised mobile-satellite spectrum. The FCC said this concludes its review of the $11.5 billion purchase, finding the deal likely to improve coverage in unserved areas and strengthen emergency communications, with no material harm to the public interest.

Globalstar closed at $83.90 that day, up 1.2%, on about 2.1 million shares, roughly three times recent volume. It closed at $84.07 on 28 October.

Orbit Alpha view: the $90 headline is not the real price

Each Globalstar share can be swapped for $90 in cash or 0.3210 Amazon shares, but the stock option is only capped at $90, not guaranteed. It reaches $90 only if Amazon trades at about $280.37 or higher. At Amazon's 28 October close of $254.60, 0.3210 shares were worth $81.73.

Cash is limited to 40% of all Globalstar shares. With the stock option worth less than $90, holders have every reason to ask for cash, and if they all do, each is paid roughly 40% in cash and 60% in Amazon stock. That mix was worth about $85.04 on 28 October, only about 1.1% above Globalstar's $84.07 close, not the 7% gap the $90 headline suggests.

Scenario on 28 October prices	Value per GSAT share	Versus $84.07 close
Headline cash price	$90.00	+7.1%
All Amazon stock (0.3210 x $254.60)	$81.73	-2.8%
Everyone elects cash: 40% cash, 60% stock	$85.04	+1.1%

In short, the market is pricing Globalstar as a share in Amazon with a cash cushion, not as a $90 cash takeover. Until the deal closes, Globalstar's price will move with Amazon's: every $10 move in Amazon shifts the blended value by about $1.93 a share. These figures are our own calculations from the published terms and closing prices, and the final split depends on what holders actually elect.

Why Amazon is paying $11.5 billion

Spectrum is the scarce asset in phone-to-satellite service. Globalstar brings about 25 megahertz of mobile-satellite spectrum that is harmonised internationally, a working constellation, and Apple as an existing customer for iPhone and Apple Watch satellite features. Amazon has said its own direct-to-device satellites start deploying in 2028, so buying Globalstar gives Amazon Leo a spectrum position and a paying customer years before its own system is in orbit.

It also turns the phone-to-satellite race into three well-funded players in the US: SpaceX, which the FCC said holds an authorisation for a 15,000-satellite direct-to-device constellation, AST SpaceMobile with a 248-satellite authorisation, and now Amazon with Globalstar's spectrum and the Apple relationship.

What it means for other space stocks

MDA Space is building Globalstar's next satellites, and hitting milestones on those replacement satellites is a condition of the deal closing. Amazon has said it will keep supporting the Apple service on those satellites, which points to the programme continuing under new ownership.
AST SpaceMobile now faces Amazon's balance sheet in the race to sign mobile network operators, alongside SpaceX. The FCC's 29 October vote on new spectrum for direct-to-device services matters for all three.
Globalstar holders who take Amazon stock become Amazon shareholders, so after closing GSAT stops being a pure-play space stock.

What to watch next

Amazon's share price against about $280.37, the level at which the stock option is worth the full $90.
Progress on Globalstar's replacement satellites, a closing condition, and any use of the up to $110 million downward price adjustment, which is roughly $0.85 per Globalstar share based on a market value of about $10.9 billion.
The election deadline and proration result once Amazon's registration statement is effective; closing is expected in 2027.
Follow the live price on the GSAT stock page.

Questions and answers

Will Globalstar shareholders get $90 a share?

Not necessarily. $90 is the cash price, but cash is capped at 40% of shares. The rest is paid in Amazon stock at 0.3210 shares each, which was worth $81.73 at Amazon's 28 October close. Holders who elect cash are likely to receive a mix of the two.

Is the Amazon Globalstar deal finished?

No. The FCC has completed its review, but closing is expected in 2027, once remaining conditions are met, including milestones on Globalstar's replacement satellites.

Will iPhone Emergency SOS keep working?

Yes, according to Amazon and Apple. Amazon Leo will continue to support iPhone and Apple Watch models that use Globalstar's satellites today.

Sources

Published 29 Oct 2026. Orbit Alpha is information, not investment advice.

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