Amazon is reportedly in advanced talks to acquire the satellite communications firm Globalstar in a deal valued at approximately $9 billion. First reported by the Financial Times on Wednesday evening, the acquisition would be a massive strategic acceleration for Amazon’s satellite broadband initiative, now publicly branded as Amazon Leo (formerly Project Kuiper).
The deal would give Amazon immediate access to established low-Earth orbit (LEO) infrastructure and, crucially, Globalstar’s valuable global L-band spectrum rights, which are essential for direct-to-device satellite connectivity.
1. Market Reaction: Globalstar Surges
Following the reports, Globalstar’s stock (GSAT) witnessed high volatility and significant gains as investors weighed the $9 billion valuation against its current market cap.
- Stock Jump: Globalstar shares surged as much as 24% in extended trading, hitting intraday highs near $85 per share—an 18-year high for the company.
- Amazon Stability: Amazon’s stock (AMZN) remained relatively flat, closing around $210.57, as the market viewed the $9 billion price tag as a manageable “strategic bolt-on” for the $2.2 trillion giant.
- SpaceX Context: The news coincided with reports that SpaceX has confidentially filed for an IPO, further heating up the “space race” between Jeff Bezos and Elon Musk.
2. The Apple Complication: A 20% Stake
The most complex part of the negotiation involves Apple, which holds a 20% minority stake in Globalstar following a $1.5 billion investment in 2024.
- Emergency SOS: Globalstar currently powers the “Emergency SOS via Satellite” feature for the iPhone 14 through the latest iPhone 17 models.
- The Dilemma: Apple is both a partner and a fierce rival to Amazon. For the deal to proceed, Amazon must negotiate terms that guarantee Apple continued access to the network or potentially buy out Apple’s stake at a premium.
- Infrastructure Synergy: Interestingly, Apple already uses AWS (Amazon Web Services) for much of its cloud storage, suggesting a foundation for a “coopetition” agreement may already exist.
3. Strategic Rationale: Catching Up to Starlink
Amazon is currently in a race against time and regulatory deadlines. By acquiring Globalstar, Amazon shifts from “building” to “buying” key components of its network.
| Strategic Need | How Globalstar Helps |
| Spectrum Rights | Provides immediate, globally harmonized L-band spectrum for mobile and IoT. |
| Operational Fleet | Adds an existing constellation of LEO satellites to Amazon’s 200+ current test satellites. |
| FCC Deadlines | Helps Amazon meet its July 30, 2026, deadline to have 1,618 satellites in orbit (a target it is currently trailing). |
| AWS Integration | Allows Amazon to offer “Direct-to-Cloud” satellite links for enterprise and government clients via AWS. |
4. Competitive Landscape (April 2026)
The LEO satellite market is rapidly consolidating into three major global “tiers”:
- Tier 1 (The Leaders): SpaceX Starlink (9,500+ satellites, 10M+ users) and now Amazon Leo (bolstered by Globalstar).
- Tier 2 (Enterprise): Eutelsat OneWeb, which recently ordered 340 next-gen satellites to focus on the B2B and defense sectors.
- Tier 3 (Regional): Telesat Lightspeed (Canada) and various “Sovereign AI” satellite projects in China and the EU.
5. Regulatory Hurdles
The deal is expected to face intense scrutiny from the FCC and antitrust regulators in both the U.S. and the EU. Competitors, most notably SpaceX, have already filed oppositions to Amazon’s recent requests for satellite deployment extensions, signaling that the legal battle for “orbital real estate” is just beginning.
“By integrating Globalstar’s existing infrastructure, Amazon aims to quickly enhance its AWS Ground Station network, gaining key advantages in enterprise connectivity,” noted one analyst at Whalesbook.
