Tech giant Amazon (AMZN) is in deep talks to acquire satellite communications operator Globalstar (GSAT), aiming to accelerate its own low Earth orbit satellite business and directly compete with SpaceX’s Starlink. The potential deal is estimated to be valued at up to $9 billion.
Headquartered in Covington, Louisiana, Globalstar is known for its low Earth orbit communication satellites, providing voice, data, and asset tracking services to corporate, government, and consumer markets. The company’s stock price has already doubled over the past year. Fueled by rumors of this major acquisition, the stock surged more than 20% in after-hours trading on Wednesday, reaching a high of $85 per share, fully reflecting strong market attention and expectations.
Despite Amazon’s strong acquisition interest, the deal faces complex strategic maneuvering, particularly due to the significant role played by tech giant Apple (AAPL). As a long-time deep partner of Globalstar, Apple currently holds about 20% of the company’s equity after injecting $1.5 billion in 2024. More critically, 85% of Globalstar’s existing satellite capacity is exclusively reserved for Apple to support the “SOS via Satellite” feature on iPhones. This means that for Amazon to successfully acquire Globalstar, it must not only overcome legal and financial hurdles but also reach an exceptionally rare compromise with rival Apple over infrastructure sharing and future technology roadmaps.
From an industry perspective, Amazon’s move reflects its urgent need to catch up with SpaceX’s Starlink. Compared to Starlink’s mature network of over 9,500 satellites, Amazon’s Project Kuiper has deployed only 180 satellites so far and has been plagued by insufficient launch capacity and deployment delays. By acquiring Globalstar, which holds mature orbital authorizations and ground station facilities, Amazon could significantly shorten the construction timeline for network coverage. However, market analysts also note that Globalstar has been linked to other potential buyers over the past year, including Elon Musk’s SpaceX. The current situation has made Globalstar a central hub in the satellite communications sector. For Amazon, this is not just an expansion of hardware infrastructure but a strategic battle over satellite spectrum resources and global low-orbit communications dominance. If the $9 billion deal is ultimately finalized, it would completely reshape the current satellite internet landscape dominated by SpaceX and could prompt unprecedented deep collaboration and competition between two ecosystem giants—Apple and Amazon—in the realm of deep-space communications.
According to sources familiar with the matter, SpaceX has confidentially filed for an initial public offering. Previous reports indicated that SpaceX plans to raise approximately $40 billion to $80 billion through an IPO, with a potential valuation target of up to $1.75 trillion. Currently, both Amazon and Globalstar have remained silent, declining to officially comment on the rumors. As of press time, Globalstar’s after-hours stock gain had eased to 18.02%, trading at $80.85 per share.
