Key Moments
- Amazon is reportedly negotiating a potential acquisition of Globalstar in a deal that could be valued at about $9 billion, according to the Financial Times.
- Globalstar shares jumped 12.3% in premarket trading, while Amazon shares slipped nearly 2% following the report.
- The talks come as Amazon accelerates deployment of its Leo satellite network, positioning it as a direct competitor to SpaceX’s Starlink.
Amazon in Talks to Acquire Globalstar
On April 2, Reuters reported that Amazon is in discussions to acquire satellite telecommunications company Globalstar, as the technology giant seeks to accelerate development of its own low-earth-orbit satellite platform to compete with SpaceX’s Starlink. The Financial Times report, citing people familiar with the matter, indicated that the prospective transaction could be worth around $9 billion.
Globalstar’s stock, which has already more than doubled in market value over the past year, jumped 12.3% in premarket trading on Thursday following the news. Shares of Amazon declined nearly 2% in the same session. Globalstar had a market capitalization of $8.81 billion as of the last close.
Profile of Globalstar and Deal Complexities
Headquartered in Covington, Louisiana, Globalstar operates low-earth-orbit communications satellites and provides voice, data, and asset-tracking services to enterprise, government, and consumer clients. According to the Financial Times report, Amazon and Globalstar are still working through several complex elements of a potential deal after protracted negotiations.
One key complication cited in the report is Apple’s ownership of a 20% stake in Globalstar, which has required direct discussions between Amazon and Apple. Globalstar did not immediately respond to a request for comment from Reuters. Amazon declined to comment.
| Company | Key Detail | Figure / Status |
|---|---|---|
| Globalstar | Market capitalization (last close) | $8.81 billion |
| Globalstar | Stake owned by Apple | 20% |
| Globalstar (stock) | Premarket move on Thursday | +12.3% |
| Amazon (stock) | Move following deal report | Nearly -2% |
Amazon’s Leo Network and the Starlink Rivalry
The reported takeover discussions come as Amazon rolls out Leo, its low-earth-orbit satellite initiative previously known as Project Kuiper. The plan calls for a constellation of 3,200 satellites. Amazon’s network is positioned as the closest competitor to Elon Musk’s Starlink, which already operates more than 9,500 satellites.
Starlink currently serves more than nine million users around the world and accounts for an estimated 50%-80% of SpaceX’s revenue. Its customer base covers individual consumers, businesses, and government entities, including U.S. national security agencies through its Starshield offering. Amazon’s Leo system, which has 180 satellites in orbit so far, is targeting a similar mix of clients.
SpaceX Valuation and IPO Prospects
Separately, SpaceX has confidentially submitted paperwork for a U.S. initial public offering, two people familiar with the matter told Reuters earlier the same day. Such a listing could potentially rank among the largest equity offerings ever.
Analysts estimate that a significant portion of SpaceX’s potential $1.75 trillion valuation would be underpinned by its Starlink satellite business.
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