An unconfirmed acquisition rumor sent the entire satellite communications sector soaring on Thursday.
According to a Financial Times report citing people familiar with the matter, e-commerce and cloud giant Amazon (AMZN) is in advanced talks to acquire satellite communications company Globalstar (GSAT) for approximately $9 billion. The news triggered a sharp rally: Globalstar surged more than 13% intraday, lifting other satellite names including Iridium Communications and Viasat.
While none of the three companies have officially commented, investors have already cast their “excited votes” with real money.
Amazon’s satellite internet project, Project Kuiper (now renamed Amazon Leo), aims to deploy over 7,700 low-Earth orbit (LEO) satellites to compete head‑on with Elon Musk’s Starlink. But due to rocket shortages, launch delays, and manufacturing snags, Amazon has only deployed about 200 satellites so far – and has even been forced to buy launch services from SpaceX.
In this context, acquiring Globalstar offers a fast lane. Globalstar operates 24 in‑orbit LEO satellites, along with valuable spectrum licenses and mature ground infrastructure. If a deal goes through, Amazon would immediately expand its satellite assets, ease regulatory pressure, and accelerate the commercial rollout of its broadband service.
However, the biggest wildcard is Apple. In 2024, Apple invested $1.5 billion in Globalstar for a 20% equity stake and locked up 85% of the company’s network capacity for iPhone satellite emergency messaging. That means any acquisition would require Apple’s consent. Sources say Apple and Amazon have also been holding talks, but the situation remains highly complex.
The acquisition rumor first lit up Globalstar itself – the stock jumped 13.48% on the day. But the ripple effects went much further:
The whole segment seemed to have been fast‑forwarded, with investors scrambling for the “second Globalstar.” Yet market watchers also warn: large‑scale M&A talks are highly uncertain, and Apple’s stake makes this particular deal even trickier. If the rumor fizzles or the frenzy cools, recent chasers could face a sharp pullback.
