Amazon strikes deal to buy Globalstar as it looks to take on SpaceX’s Starlink
Globalstar is up 17% in premarket trading on Tuesday after Bloomberg reported that Amazon is nearing a deal to acquire the satellite company, as it moves to keep up with Elon Musk’s Starlink.
A transaction could be announced as soon as today, though final terms haven’t yet been reached and the timing of the announcement could change, according to people familiar with the matter.
Globalstar shares have almost tripled in the past year, including a jump at the start of this month after the Financial Times reported early negotiations between the two companies.
The deal would potentially accelerate Amazon’s efforts to build out its own low-earth-orbit satellite network, Bloomberg Intelligence analyst Jon Davies observed, with Amazon reportedly planning to have 700 satellites in space by the middle of 2026.
But there’s a small caveat — Apple’s 20% stake in Globalstar, which it took after a $1.5 billion investment in 2024, might give Amazon’s tech peer a say in Globalstar’s future, per people familiar with the matter. Globalstar’s buildout may already be linked with Apple’s product road map, and the iPhone maker “will not want to alter its plans,” said Davies.
Globalstar shares have almost tripled in the past year, including a jump at the start of this month after the Financial Times reported early negotiations between the two companies.
The deal would potentially accelerate Amazon’s efforts to build out its own low-earth-orbit satellite network, Bloomberg Intelligence analyst Jon Davies observed, with Amazon reportedly planning to have 700 satellites in space by the middle of 2026.
But there’s a small caveat — Apple’s 20% stake in Globalstar, which it took after a $1.5 billion investment in 2024, might give Amazon’s tech peer a say in Globalstar’s future, per people familiar with the matter. Globalstar’s buildout may already be linked with Apple’s product road map, and the iPhone maker “will not want to alter its plans,” said Davies.
