Amazon in Talks for $9B Globalstar Deal to Counter SpaceX

(P1) Amazon is in discussions to acquire satellite operator Globalstar for approximately $9 billion, a move that would significantly accelerate its ambitions in the space internet sector and intensify its rivalry with Elon Musk’s Starlink. The potential deal, reported by the Financial Times, would give Amazon control of Globalstar's existing satellite constellation and ground infrastructure, providing a crucial boost to its own Leo satellite project.

(P2) "Acquiring Globalstar would be a strategic shortcut for Amazon, instantly expanding their satellite footprint and network capabilities," said a tech M&A analyst. "However, navigating the existing commitments to Apple, which uses Globalstar's network for its emergency SOS feature, will be the most complex part of this negotiation."

(P3) Following the news, Globalstar’s stock (GSAT) surged more than 15% in after-hours trading. The company, which reported $273 million in revenue for 2025, has been the subject of takeover speculation for months, with its market capitalization reaching about $9 billion. Amazon's own satellite internet initiative, Leo, has launched over 180 satellites but still lags significantly behind SpaceX's Starlink, which operates a constellation of more than 10,000 satellites serving over 9 million users.

(P4) The acquisition is critical for Amazon to catch up in a market where it faces a significant deployment gap. The company recently sought a two-year extension from the FCC for a deadline to launch 1,600 satellites. A successful deal would not only bolster Amazon's network but also disrupt the competitive landscape, potentially forcing a strategic response from Apple, which invested $1.5 billion in Globalstar in 2024 for 85% of its network capacity. The next steps will depend on complex negotiations between three of the world's largest technology companies.

A New Front in the Satellite Wars

The potential acquisition marks a pivotal moment in the burgeoning low Earth orbit (LEO) satellite internet market. Amazon's Leo project, while ambitious with plans for roughly 7,700 satellites, has faced delays. An acquisition of Globalstar would provide an immediate and substantial increase in operational satellites and established ground stations.

This move is a direct challenge to SpaceX's Starlink, the current market leader. Starlink's extensive network has given it a first-mover advantage in providing internet services to consumers, businesses, and governments. Amazon is playing catch-up, and this acquisition would be its most aggressive move yet to close the gap.

The Apple Complication

A significant hurdle in the deal is Apple's existing relationship with Globalstar. In 2024, Apple invested $1.5 billion, taking a 20% stake and securing the majority of Globalstar's network capacity for its iPhone Emergency SOS feature. Any acquisition by Amazon would require careful negotiation to address this existing commitment. The outcome could range from a new partnership arrangement to a buyout of Apple's stake, creating a high-stakes negotiation between the tech giants.

This article is for informational purposes only and does not constitute investment advice.