Amazon is in discussions to acquire satellite telecommunications company Globalstar in a deal that could be worth around $9 billion, as the technology group accelerates efforts to build a low-Earth-orbit satellite network capable of competing with SpaceX’s Starlink, FT reported.
According to reports citing people familiar with the matter, the two companies have been engaged in extended negotiations and are continuing to work through several complex issues related to a potential transaction. The discussions remain ongoing and no final agreement has been announced.
News of the possible acquisition triggered a strong reaction in financial markets. Shares of Globalstar rose sharply in pre-market trading following the report, while Amazon’s stock declined modestly. Globalstar, headquartered in Covington, Louisiana, recently had a market capitalisation of approximately $8.8 billion.
Globalstar operates a network of low-Earth-orbit satellites that provide voice, data and asset-tracking services. Its customers include enterprises, government entities and consumer users across multiple sectors. The company has become an increasingly prominent player in satellite communications as demand grows for global connectivity services.
One factor complicating the potential acquisition is the ownership structure of Globalstar. Apple holds a 20 percent stake in the satellite operator, which reportedly requires Amazon to engage in negotiations with the technology company as part of any potential deal.
Neither Amazon nor Globalstar has publicly confirmed the talks. Amazon declined to comment on the reports, and Globalstar did not immediately respond to requests for comment.
The reported negotiations come as Amazon continues to expand its own satellite internet initiative. The company is deploying a constellation of low-Earth-orbit satellites under the program previously known as Project Kuiper, now referred to as LEO. The planned network is expected to include roughly 3,200 satellites designed to deliver broadband connectivity to customers around the world.
Amazon’s project is widely viewed as the most significant potential competitor to SpaceX’s Starlink system. Starlink currently operates the world’s largest satellite constellation, with more than 9,500 satellites in orbit and a rapidly expanding customer base exceeding nine million users globally.
The service provides broadband connectivity to individual consumers, businesses and government users. In addition to commercial offerings, SpaceX operates a specialised variant known as Starshield that provides satellite services to U.S. national security and government agencies.
By comparison, Amazon’s satellite network is still in an earlier stage of deployment. Approximately 180 satellites have been placed into orbit so far, with the company targeting similar commercial and institutional customer segments as Starlink.
The competitive market in the satellite internet sector may become even more dynamic in the coming years. Reports earlier indicated that SpaceX has confidentially filed for an initial public offering in the United States, potentially paving the way for one of the largest stock market listings ever undertaken.
If Amazon ultimately proceeds with the acquisition of Globalstar, the transaction could strengthen its position in the rapidly evolving satellite connectivity market and intensify competition with SpaceX in the race to build global broadband infrastructure in orbit.
