---
title: "FCC clears Amazon-Globalstar deal: why GSAT still trades below $90 | Orbit Alpha"
description: "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."
url: https://www.orbitalpha.cloud/articles/fcc-approves-amazon-globalstar-deal
updated: 2026-10-29
---

# 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.

## Read next
[Satellite-to-phone spectrum race: SpaceX has paid $28bn, Amazon $11.5bnWith Amazon's Globalstar deal cleared, three companies now hold their own spectrum for satellite-to-phone service. By our count SpaceX has agreed to pay about $27.6bn…](https://www.orbitalpha.cloud/articles/direct-to-device-spectrum-race-spacex-amazon-ast)[Globalstar Q3 2026 results: Revenue down 4% to $70.9M, net loss of $15.7MGlobalstar revenue fell to $70.9M from $73.8M and it posted a net loss of $15.7M against net income of $1.1M a year earlier, as non-cash imputed interest rose. Adjusted…](https://www.orbitalpha.cloud/results/gsat-q3-2026)[Globalstar (GSAT): live price, filings and contractsToday's move, the latest SEC filings, insider trades, government contracts and the next results date for Globalstar.](https://www.orbitalpha.cloud/stocks/gsat)

## 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](https://www.orbitalpha.cloud/stocks/asts) 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](https://www.orbitalpha.cloud/stocks/mda) 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](https://www.orbitalpha.cloud/stocks/asts) 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](https://www.orbitalpha.cloud/stocks/gsat).

## 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.

## More
- [GSAT stock: live price, filings and contracts](https://www.orbitalpha.cloud/stocks/gsat)
- [Chart GSAT on TradingView ($15 off a paid plan)](https://www.tradingview.com/chart/?symbol=GSAT&aff_id=1173251&aff_sub=GSAT&source=orbitalpha)
- [Satellite-to-phone spectrum race: SpaceX has paid $28bn, Amazon $11.5bn](https://www.orbitalpha.cloud/articles/direct-to-device-spectrum-race-spacex-amazon-ast)
- [FCC proposes 482 MHz more for satellite-to-phone: why SpaceX gains most](https://www.orbitalpha.cloud/articles/fcc-direct-to-device-spectrum-482-mhz)
- [All Orbit Alpha analysis](https://www.orbitalpha.cloud/articles)

## Sources
- [FCC news release: FCC Approves Amazon Leo's Acquisition of Globalstar (27 October 2026)](https://docs.fcc.gov/public/attachments/DOC-426214A1.pdf)
- [FCC order DA 26-1160](https://docs.fcc.gov/public/attachments/DA-26-1160A1.pdf)
- [Amazon: Amazon to acquire Globalstar and expand Amazon Leo satellite network (14 April 2026)](https://www.aboutamazon.com/news/company-news/amazon-globalstar-apple)
- [Reuters: US agency approves Amazon Leo's $11.5 billion acquisition of Globalstar](https://www.reuters.com/business/media-telecom/us-agency-approves-amazon-leos-115-billion-acquisition-globalstar-2026-10-27/)
- [Fierce Network: FCC gives OK for Amazon Leo's acquisition of Globalstar](https://www.fierce-network.com/wireless/fcc-gives-ok-amazon-leos-acquisition-globalstar)
- [Yahoo Finance: Globalstar (GSAT) price history](https://finance.yahoo.com/quote/GSAT/history/)
- [Yahoo Finance: Amazon (AMZN) price history](https://finance.yahoo.com/quote/AMZN/history/)

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