Amazon is reportedly in advanced discussions to acquire satellite communications provider Globalstar in a deal valued at approximately $9 billion, according to a Financial Times report. The potential acquisition is a strategic move to bolster Amazon's satellite internet ambitions, known as Project Kuiper (now called Leo), as it seeks to compete with SpaceX's dominant Starlink network.
The news sent Globalstar's stock surging 12.3% in premarket trading, while Amazon's shares slipped nearly 2%. Globalstar's market capitalization stood at $8.81 billion prior to the report, with its stock having more than doubled in value over the past year. Neither Amazon nor Globalstar provided official comments on the ongoing talks.
A key complication in the negotiations is Apple's existing 20% ownership stake in Globalstar, acquired through a major investment in 2024. Beyond the financial stake, Apple has a significant operational relationship with Globalstar, securing a large share of its network capacity to power the Emergency SOS and satellite connectivity features on iPhones. This arrangement introduces structural constraints that any new acquirer, like Amazon, would need to carefully navigate and potentially restructure.
The acquisition would provide Amazon with immediate infrastructure advantages, including licensed spectrum assets in valuable L-band and S-band frequencies and operational satellite capacity. This could accelerate the deployment timeline for Amazon's Leo network, which currently has about 180-200 satellites in orbit. Amazon aims to deploy around 1,600 satellites by July 2026, with an ultimate goal of a 3,200-satellite constellation, though it has acknowledged potential regulatory and deployment delays.
The deal underscores the intensifying competition in the global satellite internet market. SpaceX's Starlink maintains a significant lead with over 9,500 active satellites and more than nine million users globally. Starlink is estimated to generate 50-80% of SpaceX's total revenue and is a key driver behind the company's confidential IPO filing, which could value SpaceX at an estimated $1.75 trillion. Amazon's Leo is viewed as the most credible rival to Starlink, though a substantial gap in scale remains.
If completed, the acquisition could accelerate consolidation in the satellite communications sector and likely attract increased regulatory scrutiny over spectrum ownership and competitive dynamics in space-based infrastructure.
