FCC Greenlights Amazon Leo's $11.5 Billion Purchase of Globalstar Spectrum

Stock News10-28 17:04

The U.S. Federal Communications Commission (FCC) on October 27 local time approved the acquisition by Amazon.com (AMZN)'s satellite unit Amazon Leo of roughly 25 megahertz of mobile satellite service spectrum from Globalstar (GSAT), completing the regulatory review of the $11.5 billion deal.

The approval also allows Amazon to build and launch satellites using the previously authorized Globalstar C-3 system once the transaction closes. Under the merger agreement, Globalstar shareholders may elect to receive $90 in cash per share or an equivalent amount in Amazon stock, with the deal expected to close in 2027.

Amazon Leo has launched more than 300 satellites since April 2025 and plans to deploy about 3,200 in low Earth orbit by 2029, while SpaceX's Starlink already has over 11,000 satellites in orbit. The FCC's Space Bureau said the two companies' assets are complementary and will accelerate Amazon Leo's entry into the direct-to-device (D2D) satellite market.

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