Key Highlights

  • Amazon has reached final-stage negotiations to purchase satellite operator Globalstar (GSAT), with an announcement potentially arriving this Tuesday.
  • Acquiring Globalstar would significantly strengthen Amazon’s Project Kuiper initiative, which operates roughly 180 satellites versus SpaceX’s fleet of over 10,000.
  • Apple’s 20% ownership position in Globalstar, following a $1.5 billion investment in 2024, adds complexity to acquisition discussions.
  • Globalstar shares have jumped 273% in the past year amid increasing speculation about a takeover.
  • Amazon has been developing its own low Earth orbit satellite constellation to enter the satellite internet market dominated by SpaceX’s Starlink.

According to Bloomberg’s report, which cited sources with knowledge of the situation, Amazon has moved close to finalizing a purchase of satellite operator Globalstar. The announcement could arrive as soon as this Tuesday.

This acquisition aligns with Amazon’s strategy to expand its low Earth orbit satellite initiative, Project Kuiper. The company has been working to establish itself in the satellite internet sector, where SpaceX’s Starlink has built a commanding lead.

Amazon presently operates approximately 180 satellites in orbit. Meanwhile, SpaceX has deployed more than 10,000 satellites. This substantial difference positions Globalstar as a valuable acquisition target for Amazon seeking to accelerate its space infrastructure development.

Reports about this potential transaction emerged previously. Earlier this month, the Financial Times indicated Amazon was moving toward a Globalstar agreement. Bloomberg’s latest report suggests the deal has progressed significantly closer to completion.


GSAT Stock Card
Globalstar, Inc., GSAT

Globalstar’s share price has surged 273% over the trailing 12-month period. This remarkable appreciation stems largely from acquisition rumors and the company’s positioning within the rapidly expanding satellite internet industry.

Apple’s Investment Creates Additional Considerations

Apple represents a significant factor in these negotiations. The technology company owns a 20% equity position in Globalstar following its $1.5 billion capital injection in 2024. Amazon will need to work directly with Apple to complete any acquisition.

Apple depends on Globalstar’s satellite infrastructure to deliver its Emergency SOS via satellite functionality for iPhone users. The impact of a potential Amazon acquisition on this partnership has yet to be determined.

Reuters indicated it was unable to independently verify Bloomberg’s reporting.

Strategic Value of Globalstar Assets

Globalstar manages a constellation of low Earth orbit satellites. An acquisition would provide Amazon with immediate satellite infrastructure, eliminating the need to construct everything from the ground up.

The transaction would also transfer licensed spectrum to Amazon, representing a scarce and highly valuable asset for satellite communication services.

Amazon has committed substantial resources to Project Kuiper. The company has deployed satellites and secured agreements with launch service providers, though it remains considerably behind Starlink in terms of operational scale.

SpaceX has dedicated years to transforming its Starlink constellation into a worldwide broadband platform. Amazon aims to capture market share in this sector, and Globalstar could substantially accelerate that timeline.

Globalstar shares declined 0.37% during Monday’s trading session, despite intensifying acquisition speculation. The stock’s impressive 12-month performance suggests much of the acquisition premium may already be reflected in current valuations.

Amazon stock advanced 0.63% on Monday. Market observers have been closely monitoring the potential transaction given the strategic significance and scale of the companies involved.

Reuters was unable to verify specific deal terms, and neither Amazon nor Globalstar had released official public statements as of Monday evening.