Amazon Heats Up The Space Race, Buying Globalstar
Inside today’s Daily Journal…
Essay: Space Is The Next Great Investment Frontier
Be energy rich to be wealthy
Tobacco market-share fluctuations
Morgan Stanley goes Bitcoin
Chart Of The Day… Bitcoin
Today’s Mailbag
Amazon (AMZN) is buying Globalstar (GSAT) today.
In time this deal will be seen as the beginning of the real “space race.” Not the battle between a failed state (USSR) and America to launch tin cans into the upper atmosphere, but a battle between private companies to convert the physical attributes of space into massive profits.
Under the terms disclosed in Globalstar’s regulatory filing, the company will merge into an Amazon subsidiary in a cash‑and‑stock transaction valued at roughly $11 billion, with each Globalstar share converting into the right to receive either $90 in cash or 0.3210 Amazon shares, subject to caps that effectively fix the consideration at $90 per Globalstar share, regardless of where Amazon’s stock trades.
This deal shouldn’t be a surprise to anyone who attended our Porter & Co Annual Conference in 2024 at my farm in Maryland.
At that conference David Lashmet explained why Globalstar was his top recommendation and gave the audience the complete technical background of why Apple (AAPL) would partner with Globalstar to create a new, global communications network.
(For new subscribers who may not recognize his name, David Lashmet was the first person I hired at Stansberry Research after founding the company in 1999. He has been my top technology expert for more than 30 years. How – after all, Stansberry Research is only 27 years old? Dave was my best professor in college. He’s still running the tech practice at Stansberry Research and I heartily endorse his work. His newest idea: preventing multiple sclerosis, a major unmet medical need.)
When Dave explained Apple’s 10-year technology road map and the key role Globalstar would play in its space strategy, Globalstar’s shares were trading for less than $20. For anyone who took Dave’s advice and bought Globalstar, this deal was a home run – a 400%+ gain in less than two years.
That’s why our conference is a must-attend for all of our Partner Pass members. There are still a handful of in-person tickets available for this year’s Annual Conference in September. Attending the live event allows you to follow up in person with the experts you see featured here. And that can change your financial life.
As soon as I heard about the deal, I called Dave.
Here’s his update:
