MergerMay 7, 2026, 04:28 PM
Globalstar to Merge with Amazon; Q1 Revenue Up 17% to $70.1M
AI Summary
Globalstar announced a definitive merger agreement with Amazon.com, Inc., where Amazon will acquire Globalstar, with the transaction expected to close in 2027. Stockholders can elect to receive $90.00 in cash or 0.3210 shares of Amazon common stock. Concurrently, Globalstar reported strong Q1 2026 financial results, with total revenue increasing 17% to $70.1 million, driven by higher wholesale capacity services. The company also received regulatory clarity from the FCC and advanced its satellite constellation roadmap.
Key Highlights
- Entered definitive merger agreement with Amazon, expected to close in 2027.
- Stockholders to receive $90.00 cash or 0.3210 Amazon shares per share.
- Q1 2026 total revenue increased 17% to $70.1 million from $60.0 million YoY.
- Service revenue rose 17% to $66.7 million, bolstered by wholesale capacity.
- Income from operations was $8.2 million, compared to a $8.5 million loss YoY.
- Adjusted EBITDA increased to $33.5 million from $30.4 million YoY.
- FCC reaffirmed exclusive MSS operating rights in the Big LEO spectrum band.
- Cash and cash equivalents were $358.4 million as of March 31, 2026.