Shares of Globalstar soared more than 15% in extended trading on Wednesday following a Financial Times report that Amazon is in talks to acquire the satellite communications company, according to sources familiar with the matter [1]. The negotiations are ongoing, with complexities arising from Apple's 20% stake in Globalstar, acquired in 2024 as part of a $1.5 billion investment aimed at enhancing the company's satellite constellation and ground infrastructure [1]. Amazon declined to comment on the potential deal, and Globalstar representatives did not immediately respond to requests for comment [1].
A potential acquisition of Globalstar could strengthen Amazon Leo, Amazon's emerging internet-from-space service. Since last April, Amazon has launched approximately 200 satellites into low Earth orbit and plans to begin commercial service later in 2026. The company aims to build a constellation of about 7,700 satellites but has encountered delays in meeting deployment milestones. In January, Amazon requested an extension from the Federal Communications Commission to meet a deadline requiring the launch of roughly 1,600 satellites by July 2026 [1].
Amazon's move is seen as an effort to compete with SpaceX's Starlink, which currently has more than 10,000 satellites in orbit and boasts over 9 million users, giving it a significant lead in the market [1]. Bloomberg previously reported in October that Globalstar was exploring a potential sale and had held preliminary discussions with SpaceX, though no deal materialized [1].
The news of Amazon's interest in acquiring Globalstar has triggered a notable positive market reaction, with Globalstar's stock jumping sharply. However, no forward-looking statements or analyst opinions were provided in the article, and both companies have refrained from commenting on the ongoing negotiations [1].
CONCLUSION
Globalstar's stock surged on reports of Amazon's acquisition interest, reflecting high investor optimism and significant market impact. The potential deal could accelerate Amazon's satellite ambitions and intensify competition with SpaceX's Starlink. While negotiations continue, the market is closely watching for further developments.