Key Takeaways
- Shares of Globalstar experienced a surge exceeding 15% during extended trading hours after the Financial Times disclosed that Amazon is pursuing acquisition discussions with the satellite communications provider.
- While negotiations continue between both parties, several intricate deal components remain unsettled despite extended discussions.
- One major hurdle involves Apple’s substantial 20% ownership position in Globalstar, secured through a $1.5 billion capital injection in 2024.
- Such an acquisition would bolster Amazon Leo, the company’s emerging satellite-based internet venture, which has deployed approximately 200 satellites since its initial launch last April.
- Reports from Bloomberg in October indicated that Globalstar had been considering sale options, with preliminary discussions involving SpaceX.
Shares of Globalstar (GSAT) climbed roughly 12% at market open following the news, with extended-hours trading showing gains surpassing 15%. Meanwhile, Amazon (AMZN) experienced a 2.38% decline in after-hours activity.
When contacted, Amazon refused to provide commentary. Globalstar representatives had not responded to inquiries at the time of publication.
The Financial Times first published the exclusive story, referencing sources with knowledge of the situation. According to their report, both organizations have maintained ongoing discussions but continue addressing multiple challenging aspects of a potential transaction.
$AMZN is in talks to acquire $GSAT.
Amazon is making a heavy push to scale Project Kuiper and directly challenge Starlink. Buying Globalstar gives them an immediate, massive foothold in Low Earth Orbit (LEO) connectivity.$GSAT shares jumped over 15% on the news, pushing the… pic.twitter.com/mrlD32lcKB
— Karol Kozicki (@k2__investment) April 1, 2026
Among these challenges is Apple’s substantial investment in Globalstar. The tech giant secured its 20% equity stake during 2024 through a $1.5 billion strategic investment. This financial commitment was designed to enhance Globalstar’s satellite network capacity and terrestrial infrastructure. Any takeover by Amazon would necessitate careful consideration of this pre-existing partnership.
Amazon’s Satellite Internet Ambitions
Amazon has been actively developing its proprietary satellite internet platform, known as Amazon Leo. Starting last April, the e-commerce giant has successfully deployed approximately 200 satellites into low Earth orbit, with plans to commence commercial operations before year-end.
The company’s ultimate objective involves a massive constellation comprising roughly 7,700 satellites. However, progress has encountered obstacles. Earlier this year in January, Amazon petitioned the Federal Communications Commission for an extension on its deadline, which mandates the launch of about 1,600 satellites by July 2026.
Purchasing Globalstar would provide Amazon with substantial advantages — including established satellite infrastructure and valuable spectrum licenses — as it attempts to narrow the competitive distance with SpaceX.
SpaceX’s Starlink currently dominates the satellite internet market, operating more than 10,000 orbital satellites and serving over 9 million customers globally. Amazon trails significantly at present, and such an acquisition would presumably expedite its deployment schedule.
Globalstar’s Prior Sale Exploration
This marks not the initial instance of Globalstar appearing in acquisition speculation. Last October, Bloomberg revealed that the satellite operator was evaluating potential sale scenarios, including preliminary conversations with Elon Musk’s SpaceX.
Those discussions ultimately fell through. The ongoing negotiations with Amazon seem more substantive, although no definitive agreement has been finalized.
Globalstar delivers satellite-enabled voice and data communications services and has gained consumer recognition primarily through its collaboration with Apple, which utilizes the company’s infrastructure to enable the Emergency SOS via satellite functionality on iPhone devices.
This Apple partnership adds considerable complexity to any prospective acquisition. Amazon would essentially be purchasing a company where one of its primary technology competitors maintains a 20% ownership interest.
Currently, negotiations between the parties continue. The Financial Times emphasized that despite prolonged discussions, multiple complicated issues require resolution before any transaction can be completed.
