Amazon Eyes Globalstar Acquisition to Challenge SpaceX’s Starlink Dominance
Amazon is reportedly in advanced talks to acquire satellite telecommunications company Globalstar, as the e-commerce and tech giant aggressively pushes forward with its ambitions to build a formidable low-Earth-orbit (LEO) satellite network. The news, first reported by the Financial Times citing insiders familiar with the discussions, sent shockwaves through financial markets almost immediately.
Globalstar’s stock surged an impressive 24%, reaching US$85 in extended trading following the report. The company, which had already seen its market value more than double over the past year, carried a market capitalization of approximately $8.8 billion at its last close — a figure that reflects growing investor confidence in the satellite communications sector.
Headquartered in Covington, Louisiana, Globalstar operates a network of low-Earth-orbit communication satellites and delivers a broad range of services, including voice, data, and asset-tracking solutions. Its customer base spans enterprise, government, and consumer markets, making it a strategically attractive target for a company like Amazon looking to fast-track its satellite ambitions.
According to the report, the two companies have been engaged in lengthy negotiations, though several complexities continue to slow down the finalization of any deal. Both Amazon and Globalstar have yet to reach a complete agreement on the finer details of the proposed transaction.
Amazon’s Project Leo Takes Aim at Starlink’s Satellite Empire
One particularly significant hurdle involves Apple’s 20% ownership stake in Globalstar. This means Amazon would need to navigate a separate layer of negotiations with Apple before any deal could be formally sealed — adding a notable complication to what is already a complex transaction.
Neither company rushed to address the swirling speculation publicly. Globalstar did not immediately respond to media requests for comment, while Amazon flatly declined to comment on the reported acquisition discussions.
The timing of this reported deal is no coincidence. Amazon is currently in the midst of deploying Leo — formerly known as Project Kuiper — a constellation planned to include approximately 3,200 satellites in low-Earth orbit. With 180 satellites already placed in orbit, the project is steadily gaining momentum as Amazon races to carve out its share of the satellite internet market.
If the Globalstar acquisition goes through, it would dramatically accelerate Amazon’s satellite capabilities, potentially positioning Leo as the closest direct competitor to Elon Musk’s Starlink, which currently commands a constellation of more than 9,500 satellites — a significant head start in the space internet race.
Starlink is no small operation. The SpaceX-owned service currently boasts over nine million users worldwide and is estimated to generate between 50% and 80% of SpaceX’s total revenue. Its reach extends beyond everyday consumers and businesses, touching US national security operations through a specialized variant known as Starshield — underlining just how strategically important satellite connectivity has become.
Amazon’s Leo is targeting the same diverse customer base, from individual broadband users to enterprise clients and government agencies. The addition of Globalstar’s existing infrastructure and spectrum assets could give Amazon a critical competitive edge in reaching those customers faster and more efficiently.
The satellite internet industry is evolving at a breathtaking pace, and Amazon’s reported move to acquire Globalstar signals just how seriously the tech giant is taking the challenge of catching up with Starlink. With billions of dollars and global connectivity ambitions on the line, the outcome of these negotiations could reshape the future of satellite communications for years to come.