Amazon in talks to acquire Apple's primary satellite partner
What's the story
Amazon is reportedly in negotiations to acquire Globalstar, a leading satellite telecom group. The deal, which could be worth around $9 billion, is part of the tech giant's strategy to expand its low-earth-orbit (LEO) satellite business. According to Financial Times, Globalstar's shares have more than doubled in market value over the past year and jumped 24% to $85 during extended trading after news of the potential acquisition broke.
Information
Globalstar's market cap stood at $8.81 billion
As of the last close, Globalstar's market cap stood at $8.81 billion. The company, which is based in Covington, Louisiana, specializes in low-earth-orbit satellites and provides voice, data, and asset-tracking services to enterprise, government, and consumer markets.
Stake complications
The deal is complicated by Apple's stake in Globalstar
The ongoing negotiations between Amazon and Globalstar are said to be complicated by Apple's 20% stake in the latter company. This means that Amazon and Apple will have to negotiate the terms of the deal together. Notably, Bloomberg had previously reported that Globalstar was considering a sale and had even held preliminary talks with Elon Musk's SpaceX among other potential buyers.
Project Kuiper
Amazon's satellite internet initiative
Amazon has already launched over 200 internet satellites into orbit as part of its LEO program, formerly known as Project Kuiper. The Seattle-based company plans to deploy more than 7,700 low-orbit satellites to rival SpaceX's Starlink service and provide high-speed internet access. Satellite broadband is increasingly seen as a viable alternative to ground-based services, particularly for connecting remote or rugged areas.
Subscriber growth
Globalstar has nearly 800,000 subscribers
As of the end of 2025, Globalstar had nearly 800,000 subscribers for its mobile satellite services. The addition of Globalstar's network would give a major boost to Amazon's satellite internet initiative. Notably, Globalstar also provides a service that allows iPhone users to send texts and call emergency services when out of cellular range.