(April 14): Amazon.com Inc is in advanced talks to acquire satellite operator Globalstar Inc in a deal that would boost the tech giant’s efforts to build its own satellite operation, according to people familiar with the matter.
A transaction could be announced as soon as Tuesday, said the people, who asked not to be identified because the information was private. A final agreement hasn’t been reached and talks might still end without one, or the timing could change, the people said. A representative of Globalstar didn’t respond to a request for comments. A spokesperson for Amazon declined to comment.
Globalstar’s shares soared about 19% in pre-market trading on Tuesday. The company’s market value has nearly quadrupled over the past year, reaching about US$9.4 billion ($12.0 billion).
Amazon is building out its low-earth-orbit satellite network, Amazon Leo, in a bid to compete with Elon Musk’s SpaceX, whose fast-growing Starlink unit has more than 10 million active customers and about 10,000 satellites in orbit. Starlink is anticipated to bring in more than US$9 billion in revenue this year.
Satellite broadband is booming, especially in hard-to-reach locations, but Amazon is falling behind on its goal to boost its coverage with more than 7,700 satellites. It has asked the Federal Communications Commission to waive or extend a deadline to have 1,600 satellites aloft by July.
Globalstar could accelerate Amazon’s efforts because it already operates a functioning network of satellites, said Bloomberg Intelligence analyst John Davies. But the company’s network is smaller than Starlink’s, and it mostly focuses on connecting phones and other devices in areas of low coverage. The company powers Apple Inc’s emergency services feature on iPhones, for instance.
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Apple’s relationship with Globalstar likely gives the iPhone maker a say in the satellite provider’s future, people familiar with the matter have told Bloomberg. In 2024, Apple invested about US$1.5 billion in the satellite operator, taking a 20% stake in the company as part of the deal. Globalstar’s build-out plans may be linked to Apple’s product road map, and the iPhone maker “will not want to alter its plans”, said Davies.
Originally formed as a joint venture between Qualcomm Inc and Loral Corp, Globalstar launched its first low-earth-orbit satellites in 1998. The company’s chief executive officer Paul Jacobs formerly headed up Qualcomm and is the son of Irwin Jacobs, Qualcomm’s co-founder.
Globalstar had nearly 800,000 subscribers to its mobile satellite services at the end of 2025. The talks with Amazon were reported earlier by the Financial Times.
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