Key Highlights
- Shares of Globalstar rallied more than 15% during after-hours trading after the Financial Times disclosed that Amazon is pursuing acquisition discussions with the satellite communications provider.
- The discussions continue, but several challenges persist despite extended negotiations between both parties.
- Apple’s 20% ownership position in Globalstar — secured through a $1.5 billion investment last year — represents a significant complicating element in the transaction.
- An acquisition would bolster Amazon Leo, the company’s emerging satellite internet venture, which has deployed approximately 200 satellites since launching last April.
- Earlier reports from Bloomberg in October revealed that Globalstar was evaluating strategic alternatives, including preliminary discussions with SpaceX.
Globalstar (GSAT) shares rose roughly 12% at market open following the news, with after-hours trading showing gains exceeding 15%. Amazon (AMZN) declined 2.38% in extended trading.
Amazon refused to provide comment. Globalstar representatives did not immediately return requests for comment.
The Financial Times initially reported the development, citing sources with knowledge of the discussions. According to the report, negotiations have been underway for a considerable period, though multiple deal complexities remain unresolved.
Among these complications is Apple’s significant stake in Globalstar. Apple acquired a 20% ownership interest in 2024 through a $1.5 billion investment package. The arrangement was designed to expand Globalstar’s satellite network and terrestrial infrastructure. Any potential Amazon takeover would need to address this existing partnership.
Amazon’s Satellite Internet Ambitions
Amazon has been aggressively developing its satellite broadband service, branded Amazon Leo. The company has deployed approximately 200 satellites into low Earth orbit since April of last year and anticipates launching commercial operations before year’s end.
The complete vision encompasses a constellation of roughly 7,700 satellites. However, the initiative has encountered setbacks. This past January, Amazon petitioned the Federal Communications Commission for an extension on a regulatory requirement mandating the launch of about 1,600 satellites by July 2026.
A Globalstar acquisition could provide Amazon with substantial advantages — including established satellite assets and valuable spectrum licenses — as it attempts to compete more effectively with SpaceX.
SpaceX’s Starlink currently dominates the satellite broadband market, operating more than 10,000 satellites with a subscriber base exceeding 9 million users. Amazon trails considerably, and a transaction of this nature would likely expedite its development schedule.
Globalstar Previously Evaluated Strategic Options
This marks not the first instance of acquisition speculation surrounding Globalstar. Bloomberg disclosed in October that the company was examining a possible sale, including preliminary conversations with Elon Musk’s SpaceX.
Those discussions ultimately stalled. The Amazon negotiations appear more substantive, although no definitive agreement has been reached.
Globalstar delivers satellite-based communication solutions and gained consumer recognition through its Apple partnership, which enables the Emergency SOS via satellite functionality on iPhone devices.
The Apple connection adds layers of complexity beyond a standard acquisition. Amazon would essentially be purchasing a company where one of its primary technology competitors maintains a 20% ownership position.
Currently, negotiations continue between the parties. The Financial Times emphasized that despite protracted discussions, multiple complications require resolution before any transaction can be completed.
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