Viasat Stock Surges 19% as Amazon's $9 Billion Globalstar Bid Reshapes the Satellite Sector
NEW YORK, April 3 —
Viasat (VSAT) ripped nearly 19% higher to $53.69 after Amazon's reported $9bn bid for Globalstar set the entire satellite sector on fire.
- VSAT +19%, Iridium (IRDM) +15%, Globalstar (GSAT) +14% in a single session
- VSAT trades at 84.3x forward earnings on $4.6bn TTM revenue. That multiple only works if this is a takeout story.
- Watch for Amazon/Globalstar deal confirmation, price, and whether Apple's 20% Globalstar stake becomes a blocking issue
What Actually Happened
Viasat didn't announce anything. The Financial Times reported that Amazon has been in prolonged talks to acquire Globalstar for roughly $9bn, a deal that would hand Amazon's LEO satellite project (now branded Amazon Leo) Globalstar's prized Band 53/n53 spectrum plus its existing constellation and ground infrastructure. The market's read: if Amazon is willing to pay $9bn for Globalstar, then every satellite operator with real spectrum and orbital assets just got repriced. Iridium surged 15% on the same logic. Meanwhile, Delta announced it will equip 500 aircraft with Amazon Leo WiFi starting in 2028, offering free connectivity for all SkyMiles members. That deal validates the demand side of the satellite connectivity market and makes spectrum assets even more valuable.
The Catch
Viasat is not the target here. It's a bystander that caught a bid because the sector moved. At 84.3x forward earnings, the stock prices in a lot of optimism that may not arrive. Viasat already swallowed Inmarsat in 2023, loading up its balance sheet, and its GEO satellite fleet faces real competitive pressure from LEO constellations like Starlink and Amazon Leo. There's also a complication in the Globalstar deal itself: Apple owns 20% of Globalstar and controls 85% of network capacity for its Emergency SOS feature. That's not a clean acquisition. If the Amazon deal falls apart, the entire satellite re-rating unwinds, and VSAT gives back most of this move.
Bottom Line
This is a sector trade, not a company trade. Viasat becomes interesting if you believe satellite consolidation has one more big deal in it, with Viasat as the target. But on fundamentals alone, 84x forward earnings for a company burning cash to integrate Inmarsat is hard to justify. The number to watch is $9bn. If Amazon closes Globalstar at that price, the M&A floor under every satellite name gets real. If the deal stalls on Apple's stake, this was just a short squeeze in a beaten-down sector.
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