Amazon Explores Globalstar Acquisition to Expand Satellite Ambitions
Amazon is reportedly in talks to acquire satellite telecom company Globalstar, as it accelerates efforts to build its own low-Earth orbit (LEO) satellite network. According to the Financial Times, the move is aimed at strengthening Amazon’s position against SpaceX’s Starlink in the rapidly growing satellite internet market.
Globalstar Stock Surges on Deal Speculation
Following the report, Globalstar’s shares surged 24% in extended trading, reaching $85. Over the past year, the stock has more than doubled in value, bringing the company’s market capitalization to approximately $8.81 billion at the latest close.
Headquartered in Covington, Louisiana, Globalstar operates a network of LEO satellites and provides communication services including voice, data, and asset tracking. Its solutions are used across enterprise, government, and consumer sectors.
Ongoing Negotiations and Apple’s Involvement
Discussions between Amazon and Globalstar are still ongoing, with several complexities yet to be resolved. One of the key challenges is Apple’s 20% ownership stake in Globalstar, which requires Amazon to also negotiate terms with Apple as part of any potential agreement.
Neither Globalstar nor Amazon has officially commented on the report.
Amazon’s Satellite Strategy to Compete with Starlink
The potential deal comes as Amazon continues deploying its satellite network, now referred to as LEO and previously known as Project Kuiper. The initiative plans to launch around 3,200 satellites into orbit.
Amazon’s network is expected to become one of the closest competitors to SpaceX’s Starlink, which already operates more than 9,500 satellites globally.
Starlink’s Market Dominance and Revenue Impact
Starlink currently serves over nine million users worldwide and is estimated to generate between 50% and 80% of SpaceX’s total revenue. Its services cater to a wide range of customers, including individuals, businesses, and government agencies.
The platform also supports U.S. national security operations through its specialized Starshield offering.
Amazon’s Progress and Market Position
So far, Amazon has launched approximately 180 satellites, significantly behind Starlink but targeting the same customer segments. The company is leveraging its financial strength and infrastructure to close the gap in the coming years.
SpaceX IPO and Valuation Outlook
In parallel developments, SpaceX has reportedly filed confidentially for a U.S. initial public offering. This could potentially become the largest stock market listing in history.
Analysts suggest that a major portion of SpaceX’s estimated $1.75 trillion valuation would be driven by the continued growth and dominance of its Starlink satellite business.
