- Amazon is in advanced talks to acquire Globalstar — whose shares have nearly quadrupled in a year, giving it a market cap of ~$9.4 billion — in a deal that could be announced as soon as Tuesday
- The acquisition would give Amazon Leo a functioning satellite network and valuable spectrum rights, bypassing years of buildout needed to compete with Starlink’s 10,000 satellites and 10+ million customers
- Globalstar powers Apple’s emergency satellite feature on iPhones — Apple holds a 20% stake after a $1.5 billion investment in 2024, giving it a significant say in any deal outcome
- Amazon Leo is already behind on FCC milestones, having asked for a waiver on a requirement to have 1,600 satellites aloft by July — Globalstar would help close that gap fast
What Happened?
Amazon is in advanced talks to acquire satellite operator Globalstar in a deal that would dramatically accelerate its Amazon Leo satellite internet program, according to people familiar with the matter. An agreement could be announced as soon as Tuesday, though talks could still fall apart or be delayed. Globalstar operates a functioning low-earth-orbit satellite network — smaller than Starlink’s but already live — and crucially holds spectrum rights that could complement Amazon Leo’s planned 7,700-satellite constellation. Globalstar’s shares have nearly quadrupled over the past year, valuing the company at approximately $9.4 billion.
Why It Matters?
This deal, if completed, would mark the most direct challenge yet to Elon Musk’s Starlink, which dominates satellite broadband with over 10,000 satellites in orbit, more than 10 million active customers, and an expected $9 billion-plus in revenue this year. Amazon Leo has been struggling to keep pace — it missed key FCC deployment milestones and asked regulators for a deadline waiver. Acquiring Globalstar would give Amazon an operational satellite network overnight, along with differentiated spectrum assets. There is a significant complication, however: Apple invested $1.5 billion in Globalstar in 2024, taking a 20% stake, and Globalstar’s infrastructure is tied to Apple’s product roadmap — including the emergency satellite feature on iPhones. Apple will have a direct say in whether and how any deal proceeds.
What’s Next?
A deal announcement could come as early as Tuesday. Regulatory scrutiny will be substantial given Amazon’s size and the national security dimensions of satellite spectrum. Apple’s consent — or active involvement in deal terms — will likely be a prerequisite for any transaction to close. If the acquisition goes through, the satellite internet market shifts from a near-monopoly to a genuine two-horse race, with implications for rural broadband access, government contracts, and the broader competition between Amazon and SpaceX across aerospace, logistics, and cloud infrastructure.
Source: Bloomberg
