Investigation into Globalstar's Transaction with Amazon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 14 2026
0mins
Source: PRnewswire
- Shareholder Rights Investigation: Ademi LLP is investigating Globalstar for potential breaches of fiduciary duty in its transaction with Amazon, highlighting concerns over corporate governance that could undermine shareholder confidence.
- Transaction Structure Analysis: Globalstar shareholders will receive either $90 in cash or 0.3210 shares of Amazon stock per share, with cash elections capped at 40% of total shares, potentially disadvantaging some shareholders.
- Financial Risk Potential: The transaction agreement includes a downward adjustment clause of up to $110 million if Globalstar fails to meet certain operational milestones, which could negatively impact the company's financial health and increase uncertainty for investors.
- Competition Limitation Clause: The agreement imposes significant penalties on Globalstar for accepting competing bids, which may harm shareholder interests and raise further questions about the board's conduct in fulfilling their fiduciary duties.
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Analyst Views on GSAT
Wall Street analysts forecast GSAT stock price to fall
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 84.210
Low
60.00
Averages
67.00
High
75.00
Current: 84.210
Low
60.00
Averages
67.00
High
75.00
About GSAT
Globalstar, Inc. is a global telecommunications provider. The Company provides mobile satellite services, including voice and data communications services to retail, business and governmental customers, as well as wholesale satellite capacity services. It also offers these services over its network of in-orbit satellites and ground stations. Its low earth orbit (LEO) satellite constellation and licensed Band 53/n53 spectrum, it delivers satellite and terrestrial connectivity solutions. Its comprehensive connectivity ecosystem includes a software-defined, purpose-built private wireless network platform, coupled with Globalstar Band 53 in XCOM RAN and trusted GPS messengers Saved by SPOT for safety and personal communication for business and enterprise applications. The Company serves business, enterprise, and consumer markets across the globe. It supports applications that track and protect assets, enable automation, enhance operational efficiency, and safeguard lives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Amazon Satellite Plans Hit Snag: Amazon's Blue Origin experienced a rocket explosion during a launch test in Florida, with no satellites on board; however, this incident could delay the deployment of Amazon's planned low-Earth orbit broadband satellite network, impacting its competition with SpaceX's Starlink.
- Investor Focus: Amazon has deployed approximately 240 satellites over the past year, and while partnerships with multiple launch providers mitigate the risk of a single launch failure, potential delays in future launches could complicate the timeline for its commercial service, expected to start in Q3.
- M&A Update: An FCC filing revealed details of Amazon's acquisition of Globalstar, including the transfer of Apple's 20% stake, marking a significant step in Amazon's strategy to expand its satellite offerings into direct-to-device services.
See More
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- Significant Revenue Growth: SpaceX's Starlink generated $11.39 billion in revenue last year, accounting for 61% of total sales, with this figure rising to 69% in Q1 of this year, underscoring its critical role in the company's overall performance.
- Strong Profitability: Starlink was the only profitable division for SpaceX, generating $4.42 billion in net income last year, while the rocket launch division lost $657 million and the AI division incurred a $6.35 billion deficit, highlighting Starlink's strategic importance as a profit engine.
- Rapid User Base Expansion: Starlink's user base surpassed 10.3 million in Q1, more than doubling from the previous year, indicating strong global demand, particularly among commercial clients such as airlines, enhancing its market position.
- Surge in Capital Expenditures: SpaceX reported capital expenditures of $10.1 billion in Q1, more than doubling year-over-year, with $7.7 billion allocated to AI development, reflecting the company's strategic investment in technology innovation and market competitiveness.
See More
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- Launch Delay Announced: Globalstar has announced the postponement of its planned May 17 launch of the HIBLEO-4 replenishment satellites to allow more time for launch preparations, a decision that may impact the company's network service reliability.
- New Launch Date Pending: The company stated that a new launch date will be announced once confirmed, and this uncertainty could negatively affect investor confidence, particularly given the company's reliance on satellite networks to enhance service.
- Satellite Network Replenishment Mission: The mission aims to replenish Globalstar's low Earth orbit satellite constellation to support network resilience and service reliability, underscoring the strategic importance of the company in the satellite communications market.
- Market Reaction Analysis: Despite the launch delay, Globalstar is actively seeking to enhance its market position through partnerships with Amazon and Apple, indicating the company's commitment to pursuing growth opportunities even in the face of challenges.
See More
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- Launch Delay: Globalstar's planned May 17 launch of HIBLEO-4 replenishment satellites with SpaceX has been postponed to allow more time for teams to prepare the satellites, indicating the company's commitment to ensuring a successful launch.
- Network Resilience Focus: The mission remains centered on replenishing Globalstar's existing low Earth orbit constellation to support continued network resilience and service reliability, reflecting the company's ongoing efforts to enhance service quality and customer satisfaction.
- Global Telecommunications Provider: As a global telecommunications provider, Globalstar delivers reliable satellite and terrestrial connectivity solutions through its industry-leading low Earth orbit satellite constellation and licensed Band 53 spectrum, aiming to empower customers worldwide to connect and communicate effectively, driving business growth.
- Innovation and Efficiency: The company is dedicated to supporting business, enterprise, and consumer markets globally through its software-defined private wireless network platform and GPS communication tools, enhancing asset tracking, automation, and operational efficiency, showcasing its innovative capabilities and competitive edge in global connectivity.
See More
Globalstar Launches HIBLEO-4 Satellites to Enhance LEO Constellation
- Launch Schedule: Globalstar is set to launch its HIBLEO-4 replenishment satellites on May 17 via a SpaceX Falcon 9 rocket, with a launch window opening at 8:50 a.m. ET, reflecting the company's ongoing investment in its low Earth orbit (LEO) satellite infrastructure.
- Network Resilience Enhancement: This launch aims to replenish Globalstar's existing LEO constellation, thereby enhancing the network resilience and reliability of its satellite communication services, ensuring that customer communication needs are met in daily operations.
- Strategic Significance: CEO Paul E. Jacobs emphasized that this launch represents a critical step in executing the company's long-term strategy, as replenishing the existing constellation is essential for delivering reliable satellite services globally, showcasing the company's commitment to infrastructure development.
- Live Coverage: A live webcast will be available on spacex.com/launches starting 15 minutes before liftoff, ensuring global users can follow the launch progress in real-time, further enhancing the company's market transparency and customer engagement.
See More
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- Wider Loss Reported: AST SpaceMobile reported a Q1 loss of $0.66 per share, significantly worse than Wall Street's expectation of a $0.20 loss, with revenue at $14.7 million, well below the $36.58 million forecast, indicating serious challenges in revenue growth.
- Satellite Launch Goals at Risk: Analyst Tim Farrar noted that even under a 'super optimistic' scenario, AST SpaceMobile could end 2026 with only about 28 satellites launched, far short of the 45-target, highlighting severe risks in executing its aggressive satellite deployment timeline.
- Future Revenue Guidance: Despite these challenges, AST SpaceMobile maintained its full-year revenue guidance of $150 million to $200 million, although this is below the consensus estimate of $181.13 million, reflecting market concerns about its growth prospects.
- Market Sentiment Shift: Although the stock rose 10% prior to the earnings release, it plummeted 12% in after-hours trading post-report, indicating a loss of investor confidence, while retail sentiment briefly surged to 'extremely bullish'.
See More
