Amazon is reportedly in talks with a satellite operator $Globalstar (GSAT.US)$ to negotiate an acquisition aimed at accelerating its efforts to catch up with SpaceX's Starlink. A key variable in the negotiations lies in Apple's ownership of $Globalstar (GSAT.US)$ approximately 20% of the equity, meaning Amazon must also negotiate with Apple. Currently, Amazon has just over 180 satellites in orbit, far behind Starlink's fleet of more than 10,000 satellites.
$Amazon (AMZN.US)$ Amazon is seeking to challenge SpaceX $Globalstar (GSAT.US)$ in the low Earth orbit satellite internet market through this acquisition.
According to sources familiar with the matter who spoke to the Financial Times, Amazon is in talks to acquire a satellite telecommunications operator. $Globalstar (GSAT.US)$ As of Wednesday, April 1, Globalstar had a market value of approximately $9 billion. Its stock price surged about 230% over the past year as markets were already betting that the company could become either a potential competitor or acquisition target for SpaceX. Following the news, Globalstar's after-hours shares rose more than 13%.
The negotiations have been ongoing for some time, but both parties are still discussing several complex issues. Sources cautioned that no final agreement has been reached and the talks could still change or collapse. Globalstar stated, "Company policy does not comment on industry rumors or speculation"; Amazon declined to comment; Apple did not immediately respond.
Apple holds a 20% stake, adding complexity to the transaction structure.
One of the core obstacles to this acquisition is $Apple (AAPL.US)$ Apple’s stake in Globalstar.
In 2024, Apple invested $1.5 billion in Globalstar, acquiring approximately 20% of its shares. As part of the agreement, Globalstar committed to reserve 85% of its network capacity for Apple to support satellite messaging services on the iPhone in areas outside cellular signal coverage.
This means that if Amazon wants to complete the acquisition, it must also negotiate with Apple to address this strategic capacity arrangement, making the transaction structure even more complex.
Amazon’s pressure to catch up.
Amazon’s project to enter the low Earth orbit satellite internet market is named "Leo," and the company completed the launch of its first batch of satellites last year.
However, the gap remains substantial: Amazon currently has just over 180 satellites in orbit, while SpaceX’s Starlink boasts more than 10,000 active satellites in orbit.
Progress is also under pressure. In February this year, Amazon had to apply to the Federal Communications Commission (FCC) for a two-year extension to meet the regulatory requirement of launching 1,600 satellites by July this year. According to regulatory filings, Amazon plans to increase the number of satellites in orbit to approximately 700 by the middle of this year, but insufficient launch capacity is constraining its expansion pace.
Amazon CEO Andy Jassy told investors in February this year that Leo is one of the "incremental opportunities" that the e-commerce giant, with a market value of $2.2 trillion, will pursue.
Globalstar's Business Value
Globalstar, founded in 1991, is already a satellite telecommunications company with an operational scale.
Its latest annual report shows that total revenue for the fiscal year 2025 was $273 million, representing a 9% year-on-year increase; operating income amounted to $7.4 million, compared to a slight loss recorded in the previous year.
For Amazon, acquiring Globalstar not only means gaining access to a ready-made satellite network and spectrum resources but also directly narrowing the gap with Starlink. According to Bloomberg, Globalstar began exploring the possibility of a sale last October and held preliminary discussions with SpaceX, indicating that this asset has drawn attention from multiple parties.
On the commercial implementation front, Amazon has signed an agreement with $JetBlue Airways (JBLU.US)$ and $Delta Air Lines (DAL.US)$ to provide in-flight internet services for its flights in 2027 and 2028 — making Globalstar’s network capacity even more strategically valuable to Amazon.
Editor/Doris