Amazon close to acquiring Globalstar to challenge Musk’s Starlink
Amazon.com Inc. is reportedly in advanced discussions to acquire satellite operator Globalstar Inc. in a move that would enhance the tech giant’s ambitions to establish its own satellite operation, according to sources. A transaction could be announced as soon as Tuesday, according to sources. A final agreement has yet to be reached, and discussions may conclude without one, or the timing could shift, according to the sources. A representative for Globalstar has not yet provided a response to the request for comment. An Amazon spokesperson chose not to provide a comment. Globalstar’s shares have nearly quadrupled over the past year, resulting in a market value of approximately $9.4 billion for the company.
A deal would indicate a growing rivalry between Amazon and Elon Musk’s SpaceX, whose rapidly expanding Starlink satellite internet division boasts over 10 million active customers and approximately 10,000 satellites in orbit. Starlink is expected to generate over $9 billion in revenue this year. Satellite broadband is regarded as a more feasible option compared to ground-based services, particularly in remote areas. Amazon is developing its own low-earth-orbit satellite network, known as Amazon Leo, to provide high-speed internet access in rural and remote regions, with plans to operate over 7,700 satellites. The service is currently undergoing limited testing with businesses. The company has requested that the Federal Communications Commission either waive or extend a deadline requiring it to have 1,600 satellites in orbit by July, a target that Amazon Leo is expected to miss significantly.
According to analyst John Davies, Globalstar could expedite Amazon’s initiatives due to its existing operational network of satellites. Globalstar’s network is more limited compared to Starlink’s, primarily concentrating on linking phones and other devices in regions with minimal coverage. The company provides the technology behind Apple Inc.’s emergency services feature on iPhones, for instance. Davies stated, “Globalstar would also bring different spectrum rights which might be useful to Leo.” According to sources, Apple’s relationship with Globalstar likely allows the iPhone maker to influence the satellite provider’s future, Bloomberg reports.
In 2024, Apple made a significant investment of approximately $1.5 billion in Globalstar to enhance the infrastructure. As part of the deal, Apple acquired a 20% stake in the company. Globalstar’s build-out plans could be associated with Apple’s product roadmap, and the iPhone maker “will not want to alter its plans,” stated Davies. Globalstar was initially established as a joint venture between Qualcomm Inc. and Loral Corp. prior to the launch of its first low-earth-orbit satellites in 1998. As of the end of 2025, it boasted nearly 800,000 subscribers to its mobile satellite services. The Financial Times previously reported on the discussions with Amazon.
