GSAT Stock On Track To Hit 18-Year High As Amazon Acquires Globalstar For Over 23% Premium
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The deal aims to boost direct-to-device connectivity, enabling smartphones and other devices to link directly to satellites.Globalstar shareholders may elect to receive either $90 in cash per share or 0.3210 Amazon shares, with the share option capped at a $90 value per share.Separately, Amazon has reached an agreement with Apple to enable satellite connectivity features on iPhones.Globalstar Inc. (GSAT) is on track to hit April 2008 highs after Amazon.com Inc. (AMZN) agreed to acquire the satellite-based telecommunications provider. The move is expected to boost Amazon's ambition to deliver direct satellite-to-phone communications and expand coverage beyond traditional cellular limits.Amazon To Integrate Globalstar's Satellite AssetsUnder the deal announced Tuesday, Amazon will integrate Globalstar's satellite operations, spectrum rights, and infrastructure into the growing Amazon Leo low Earth orbit network. The companies said the combination will strengthen efforts to deliver direct-to-device (D2D) connectivity, allowing smartphones and other devices to connect directly to satellites without relying solely on ground towers. "We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime."-Paul Jacobs, CEO, Globalstar. Globalstar shareholders can choose either $90 in cash per share or...
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