Amazon Eyes Globalstar for Satellite Network Boost

Amazon.com Inc. is in advanced discussions to acquire Globalstar Inc., a satellite operator with a functioning network. This potential deal aims to enhance Amazon's own satellite constellation, Amazon Leo, designed for rural and remote high-speed internet delivery. Globalstar's existing infrastructure, which primarily focuses on device connectivity and powers Apple Inc.'s iPhone emergency services, could significantly accelerate Amazon's deployment plans.

Globalstar's shares have seen substantial growth, nearly quadrupling in value over the past year to approximately $9.4 billion. The acquisition would also intensify competition in the satellite internet market, particularly against Elon Musk's Starlink, which boasts over 10 million customers and a large satellite fleet. Bloomberg Intelligence analyst John Davies notes that Globalstar's spectrum rights might also be beneficial for Amazon's Leo network.

The involvement of Apple Inc. adds another layer, as the tech giant invested about $1.5 billion in Globalstar in 2024, securing a 20% stake. This significant investment suggests Apple may have a say in Globalstar's future, potentially influencing the outcome of Amazon's acquisition talks. Talks are ongoing, and a definitive agreement has not yet been reached, with the possibility of them concluding without a deal.