Media reports on Monday indicate that Amazon.com Inc is in advanced discussions to acquire Globalstar Inc, the satellite communications operator, as part of Amazon’s push to expand its presence in low Earth orbit and position itself as a rival to SpaceX’s Starlink network.
According to people familiar with the situation cited in the report, the agreement could be announced as soon as Tuesday. The coverage follows a separate report earlier this month that likewise said Amazon was nearing a deal for Globalstar as it seeks to build out its own LEO satellite business.
One of the central negotiating hurdles is Apple Inc’s 20% stake in Globalstar. Apple’s investment of $1.5 billion in Globalstar in 2024 means Amazon would need to engage directly with the iPhone maker as part of any acquisition discussions, adding a layer of complexity to the transaction.
Market reaction to Globalstar’s takeover prospects has been substantial: Globalstar shares have risen 273% over the last 12 months, and the company has been viewed as an attractive target in light of its potential to compete with Starlink.
Amazon has been building its own satellite constellation, operating under the name Leo, but its footprint in orbit remains modest compared with SpaceX. The company has around 180 satellites in orbit versus more than 10,000 satellites associated with SpaceX, underscoring the scale gap between the two players.
Summary
Reports say Amazon is in late-stage talks to acquire Globalstar to accelerate Amazon’s LEO ambitions and challenge SpaceX’s Starlink. An announcement could come imminently, but Apple’s 20% holding in Globalstar and the disparity in deployed satellites are significant factors.
Key points
- Amazon is reportedly negotiating to buy Globalstar as it expands its low Earth orbit satellite business - sector impacts: aerospace, telecommunications, and technology.
- Apple holds a 20% stake in Globalstar after investing $1.5 billion in 2024, meaning Amazon would need to negotiate directly with Apple - sector impacts: corporate M&A and tech ownership structures.
- Globalstar’s stock has surged 273% over the past year amid takeover interest; Amazon’s Leo constellation currently has about 180 satellites compared with SpaceX’s more than 10,000 - sector impacts: satellite infrastructure and capital markets.
Risks and uncertainties
- Apple’s 20% holding in Globalstar could complicate or delay deal completion, introducing negotiation risk for the transaction - impacts: corporate governance and M&A execution.
- The timing of any announcement is uncertain despite reports of imminent disclosure, leaving market and operational outcomes unresolved - impacts: investor sentiment and communications services planning.
- Amazon’s current satellite fleet is far smaller than SpaceX’s, which may limit immediate competitive parity even if an acquisition proceeds - impacts: satellite network scale and service rollout.