Key Highlights

● Amazon agreed on 14 April 2026 to acquire Globalstar in a transaction valued at about $11.57 billion, with shareholders able to elect $90 per share in cash or 0.3210 Amazon shares.

● The Hart-Scott-Rodino antitrust Waiting Period expired on 17 July, and closing is expected in 2027, subject to FCC approval and satellite milestones.

● Second-quarter Revenue was $64.8 million, adjusted EBITDA fell to $26.0 million from $35.8 million, and the net loss was $26.5 million.

● The stock moved from the Russell 2000 into the Russell 1000 and Russell Midcap indexes on 27 June 2026, according to market data.

Globalstar (NASDAQ:GSAT), the mobile satellite operator best known for supporting emergency messaging on Apple (NASDAQ:AAPL) devices, is now primarily a merger-arbitrage story. Amazon (NASDAQ:AMZN) agreed in April 2026 to acquire the company in a transaction valued at about US$11.57 billion, and the deal is working through regulatory review. Globalstar also moved up the index ladder this year: according to market data, the stock left the Russell 2000 and joined the Russell 1000 and Russell Midcap indexes on 27 June 2026. It remains part of the Nasdaq Composite as a Nasdaq-listed stock.

Latest Company Context

Amazon announced the agreement on 14 April 2026. Globalstar shareholders may elect US$90 per share in cash or 0.3210 Amazon shares, with the stock election capped at US$90 per share. Apple separately reached an agreement with Amazon to continue satellite connectivity for current and future iPhone and Apple Watch services. In its second-quarter release on 6 August 2026, Globalstar said the Hart-Scott-Rodino antitrust waiting period expired on 17 July, and that closing is expected in 2027, subject to remaining regulatory approvals, including from the FCC, and the achievement of certain satellite milestones.

Quarterly revenue was US$64.8 million, adjusted EBITDA fell to US$26.0 million from US$35.8 million, and the company posted a net loss of US$26.5 million. Globalstar has suspended earnings calls and guidance while the transaction is pending. For the first half of 2026, revenue totaled US$134.8 million and adjusted EBITDA US$59.4 million, while the company said it remains actively engaged with the remaining regulators. Development of the third-generation C-3 satellite system and international ground-station expansion also continued during the period.

Key Business and Index Drivers

Globalstar’s value to Amazon centers on its globally harmonized S-band mobile satellite spectrum, its operating constellation and its direct-to-device relationship with Apple. Amazon has said it intends to deploy a direct-to-device system around early 2028. Operationally, Globalstar continues to replenish its network. On 16 August 2026, a SpaceX (NASDAQ:SPCX) Falcon 9 successfully launched eight replacement satellites, according to a launch tracker, a step that may matter given that the Merger terms reference satellite milestones. Commercial IoT, meaning connected devices such as asset trackers, averaged 580,427 subscribers in the second quarter, up from 534,505 a year earlier, with record activations. Cash stood at US$409.8 million at 30 June. On the index side, the move into the Russell 1000 reflects Globalstar’s larger market value, which can change the mix of passive funds that hold the shares.

What Investors Should Watch

With guidance suspended, the main catalysts are regulatory. The FCC review of the license transfers, any conditions attached to approvals, and progress on the satellite milestones tied to closing are the items to follow. The gap between Globalstar’s share price and the US$90 offer value, often called the merger spread, may reflect the market’s view of timing and completion risk; for shareholders electing stock, Amazon’s share price relative to the cap also matters. Third-quarter financial results, likely filed in November, should provide updated cash and subscriber figures. Any delay, regulatory pushback or change in terms could affect the shares, while steady progress may narrow the spread. Apple-related service changes would also be relevant given its role.

Regulators, Milestones and the Merger Spread

Globalstar’s near-term path appears to be shaped far more by the Amazon transaction than by quarterly operating results. Key antitrust clearance has been obtained, satellite replenishment launched successfully in August, and IoT activity is growing, but FCC approval and milestone conditions remain outstanding, with closing guided to 2027. For index investors, the stock’s promotion to the Russell 1000 marks a shift in profile, though that status could ultimately end if the Acquisition completes and the shares are delisted.