Amazon Moves Closer to Globalstar Deal
Amazon.com Inc (NASDAQ:AMZN) is reportedly in advanced negotiations to acquire satellite communications company Globalstar Inc (NASDAQ:GSAT), according to a Bloomberg report citing sources familiar with the matter. The potential deal signals Amazon’s growing ambition to compete directly with SpaceX’s Starlink in the satellite internet space.
Deal Announcement Could Be Imminent
Sources indicate that an official announcement could come as early as Tuesday. The report follows earlier coverage suggesting Amazon is accelerating efforts to expand its low Earth orbit (LEO) satellite capabilities.
Strategic Push Into Satellite Internet
Amazon has been steadily developing its own satellite network initiative, known as “Leo,” aiming to establish a stronger presence in the rapidly growing satellite broadband market. Acquiring Globalstar would significantly accelerate this strategy and position Amazon as a serious competitor to Starlink.
Apple’s Stake Adds Complexity
A key hurdle in the potential acquisition is Apple Inc’s (NASDAQ:AAPL) 20% stake in Globalstar. Amazon would likely need to negotiate directly with Apple to move the deal forward. Apple previously invested approximately $1.5 billion into Globalstar in 2024, making it a major stakeholder in any transaction.
Globalstar’s Surging Valuation
Globalstar shares have surged an impressive 273% over the past 12 months, reflecting increased investor interest and speculation around its strategic value in the satellite communications sector. The company’s infrastructure and growth potential have made it an attractive takeover target.
Amazon vs SpaceX: A Growing Rivalry
Despite Amazon’s ambitions, it still lags significantly behind SpaceX in satellite deployment. Amazon currently operates around 180 satellites, compared to more than 10,000 satellites launched by SpaceX’s Starlink network.
An acquisition of Globalstar could help Amazon narrow this gap and intensify competition in the global satellite internet race.
