-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
AMZN agreed today to acquire satellite operator Globalstar Inc. (GSAT) for approximately $11.6 billion. Separately, AMZN struck a deal with Apple Inc. (AAPL) to continue powering iPhone and Apple Watch satellite services, preserving GSAT's most important customer relationship. Why this acquisition matters: AMZN is quickly becoming a formidable competitor in the telecommunications space, assembling a fully-integrated connectivity stack via Amazon Leo (satellite broadband), Globalstar (device connectivity), and AWS (cloud services). GSAT's globally-licensed L-band and S-band spectrum provides the foundation for AMZN to deliver direct-to-device communication with ordinary smartphones - no specialized hardware required. This is the missing layer that Amazon Leo, which was designed to deliver broadband through dedicated terminals, could not provide on its own. The deal is expected to close in 2027, and we see limited/manageable regulatory risk.