Amazon is reportedly in advanced discussions to acquire Globalstar, a satellite telecommunications company, in a deal valued at approximately $9 billion. This move aims to bolster Amazon’s efforts to develop its own low-Earth orbit (LEO) satellite network, positioning it as a competitor to SpaceX’s Starlink service.
Globalstar, established in 1991, operates a constellation of LEO satellites providing voice and data services across more than 120 countries. The company’s shares have experienced significant growth, with a market capitalization reaching around $9 billion, reflecting increased investor interest in satellite communications.
A notable complexity in the negotiations arises from Apple’s 20% ownership stake in Globalstar. In 2024, Apple invested $1.5 billion in the company, securing a substantial portion of its network capacity for satellite-based services. This investment necessitates that Amazon engage in discussions with Apple to address potential conflicts and align strategic interests.
Amazon’s existing satellite initiative, known as Amazon Leo, has faced deployment challenges. The company had committed to launching 1,600 satellites by July 2026 but has encountered delays, with projections indicating only about 700 satellites in orbit by mid-2026. Acquiring Globalstar could provide Amazon with an operational satellite infrastructure, potentially accelerating its timeline to offer satellite-based internet services.
In response to these developments, Globalstar’s stock price has seen a notable increase, reflecting market optimism about the potential acquisition. Conversely, Amazon’s stock has experienced a slight decline, possibly due to investor concerns about the financial implications of the proposed deal.
As negotiations continue, the outcome of this potential acquisition remains uncertain. However, if finalized, the deal could significantly reshape the competitive landscape of satellite internet services, intensifying the rivalry between Amazon and SpaceX in the quest to provide global broadband connectivity.