GSAT
Bezos strikes $11bn satellite deal to rival Musk
Article Summary
HOLD- Jeff Bezos's Amazon.com (NASDAQ: AMZN) confirmed a $11.5bn deal to acquire Globalstar, tapping Globalstar's network of communications satellites to beam down mobile phone signals from space as part of its own satellite constellation division Amazon Leo, which has launched more than 240 satellites out of a planned 3,000 and plans to launch mobile services from 2028, with enough capacity to support 'hundreds of millions' of customers.
- The deal will allow the tech giant to work with mobile operators to 'extend coverage to every corner of the planet' by utilising Globalstar's broad mobile spectrum rights, putting the business in direct competition with Elon Musk's Starlink and Apple's emergency SOS messaging features on iPhone and Apple Watch.
- The takeover is expected to close in 2027 and will probably be scrutinised by global regulators and industry sources expect the deal to face stiff resistance from Mr Musk's business, which invested more than $1bn in Globalstar in 2024.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 9.0% | 25% | 35.0 ptsBelow Screener (9.0%) - Weak growth |
| EPS Growth Next 5Y ? | 0.0% | 25% | 10.0 ptsVery Weak (0.0%) - Minimal expectations |
| Target Price Upside ? | 12.8% above | 20% | 0.0 ptsAbove Target (12.8% above) - Target: $69.75 vs Current: $80.00 |
| Gross Margin % ? | 32.8% | 15% | 40.0 ptsModerate (32.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | 2.2% | 15% | 20.0 ptsBarely a Dip (2.2%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About GSAT
- Globalstar, Inc. provides mobile satellite services in the United States, Canada, Europe, Central and South America, and internationally.
- It offers duplex two-way voice and data products, including mobile voice and data services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications.
- The company also provides data transmissions using a mobile or fixed device that transmits the location of the device and other information to a central monitoring station, including commercial IoT products; communication and data transmissions using SPOT family of devices, such as SPOT X, SPOT Gen4, and SPOT Trace that emergency alerts, and transmit messages and the location of the device; and voice communication and data transmissions.
- In addition, it offers commercial IoT devices to track assets comprising cargo containers and rail cars, monitor utility meters, and monitor oil and gas assets; small satellite transmitter modules, such as the STX-3, ST-150 and ST100, and chips that enable an integrator's products to access its network; engineering and other communication services using MSS and terrestrial spectrum licenses; and hardware and software designs to develop specific applications operating over satellite network, as well as the installation of gateways and antennas.
- It distributes its products through retailers and sales force, as well as www.findmespot.com e-commerce website.
- The company serves forestry, maritime, government, oil and gas, mining, leisure, emergency services, construction, and transportation sectors.
- Globalstar, Inc. was founded in 1993 and is headquartered in Covington, Louisiana.