Key Highlights
- Financial Times reports Amazon pursuing acquisition of Globalstar valued at approximately $9 billion
- Globalstar (GSAT) stock jumped 12.3% in premarket hours; Amazon (AMZN) dropped nearly 2%
- Apple’s 20% ownership position in Globalstar adds complexity to potential transaction
- Amazon’s Leo satellite network currently operates 180 satellites with plans for 3,200
- SpaceX has filed confidentially for IPO, with Starlink projected to drive much of its $1.75 trillion valuation
According to a Wednesday report from the Financial Times, Amazon has entered advanced acquisition discussions with satellite communications provider Globalstar, with the potential transaction valued at approximately $9 billion.
$AMZN is reportedly in talks to buy $GSAT as it looks to strengthen its satellite ambitions against Starlink.
The deal would give Amazon a bigger foothold in space-based connectivity as Project Kuiper scales. pic.twitter.com/t9PcqKYDtJ
— Shay Boloor (@StockSavvyShay) April 1, 2026
The revelation triggered a 12.3% surge in Globalstar’s stock price during Thursday’s premarket session, while Amazon shares declined nearly 2% during the same period.
Globalstar’s market capitalization stood at $8.81 billion when markets closed Wednesday. The company’s stock value has more than doubled over the trailing twelve-month period.
According to sources with knowledge of the situation cited by the FT, Amazon and Globalstar have been engaged in negotiations for an extended period but continue to address various complications surrounding a potential agreement.
Both companies maintained silence on the matter. Globalstar has not provided a response to requests for comment, while Amazon declined to offer any statement.
Apple’s Ownership Creates Complications
A significant challenge in the negotiations stems from Apple’s 20% equity position in Globalstar. This ownership stake necessitates that any finalized deal would involve negotiations between Amazon and Apple as well, introducing additional complexity to an already intricate transaction.
Apple has incorporated Globalstar’s satellite infrastructure into the Emergency SOS functionality available on iPhone devices, establishing a strategic partnership that extends beyond simple financial investment.
Amazon’s Strategy to Compete with Starlink
Should the acquisition proceed, it would represent a strategic acceleration of Amazon’s satellite communications objectives. The company’s network, branded as Leo and previously identified as Project Kuiper, presently maintains 180 satellites in orbit with ambitions to deploy a constellation totaling 3,200 satellites.
Despite these plans, Amazon remains considerably behind SpaceX’s Starlink network, which operates over 9,500 satellites and provides service to more than nine million subscribers worldwide.
Starlink contributes between 50% and 80% of SpaceX’s overall revenue stream. Its customer base spans individual subscribers, commercial enterprises, and U.S. national security organizations, which utilize a specialized version known as Starshield.
Incorporating Globalstar’s established infrastructure could provide Amazon’s Leo network with substantial enhancements in both coverage and operational capabilities.
The timing of this disclosure is particularly noteworthy. SpaceX announced Wednesday that it has submitted a confidential filing for a U.S. initial public offering. Market analysts estimate that Starlink could represent a substantial portion of SpaceX’s anticipated $1.75 trillion valuation, potentially making it the largest IPO in history if the offering moves forward.
Amazon’s Leo platform is generally regarded as the most viable competitor to Starlink, despite the considerable disparity in satellite deployment.
Globalstar operates from its headquarters in Covington, Louisiana, delivering low-earth-orbit communications capabilities that include voice services, data transmission, and asset monitoring solutions for enterprise clients, government entities, and individual consumers.
Discussions between the companies remain active, with no definitive agreement yet reached.
