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Amazon Eyes Globalstar Acquisition for Satellite Ambitions
2 Apr
Summary
- Amazon reportedly in talks to acquire satellite provider Globalstar.
- Deal would bolster Amazon's burgeoning satellite internet service.
- Apple invested $1.5 billion in Globalstar in 2024.
Shares of Globalstar Inc. saw a significant surge, leaping over 20% in late trading following a report indicating that Amazon.com Inc. is in discussions to acquire the satellite provider. This potential acquisition is seen as a strategic move to strengthen Amazon's endeavors in establishing its own satellite operation.
The negotiations are ongoing, with complexities still being addressed between the two parties. This development follows earlier reports from last year that Globalstar was exploring a sale and had engaged in preliminary talks with entities including SpaceX.
Amazon's satellite program, formerly known as Project Kuiper, already has over 200 internet satellites deployed and aims to eventually operate more than 7,700 low-orbit satellites. This initiative is designed to compete directly with SpaceX's Starlink service in providing high-speed internet.
Globalstar's existing network, which served nearly 800,000 mobile satellite service subscribers as of the close of 2025, would provide a considerable advantage to Amazon. Furthermore, Apple Inc. holds a significant interest, having invested approximately $1.5 billion in 2024 to enhance Globalstar's infrastructure, securing a 20% stake in the company.
