Amazon is reportedly exploring a major move in the satellite internet space, as the tech giant enters discussions to acquire satellite telecom company Globalstar. According to a Financial Times report citing sources familiar with the matter, the potential deal aligns with Amazon’s strategy to strengthen its low-earth-orbit (LEO) satellite ambitions and directly compete with SpaceX’s Starlink network.
Following the report, Globalstar’s stock surged sharply, rising 24% in extended trading to $85. Notably, the company has already seen its market value more than double over the past year, with a market capitalization of $8.81 billion at the previous close. This strong investor response highlights growing confidence in the satellite broadband sector and the strategic importance of LEO infrastructure.
Headquartered in Covington, Louisiana, Globalstar operates a network of low-earth-orbit communication satellites, delivering voice, data, and asset-tracking solutions across enterprise, government, and consumer segments. As demand for global connectivity continues to rise, the company has positioned itself as a key player in next-generation satellite communications.
However, negotiations between Amazon and Globalstar are still ongoing, with both parties reportedly working through complex deal structures after extended discussions. One of the primary challenges involves Apple, which holds a 20% stake in Globalstar. As a result, Amazon must also engage with Apple to navigate ownership and strategic alignment issues tied to the potential acquisition.
The development comes at a crucial time, as Amazon accelerates deployment of its satellite network under its LEO initiative, formerly known as Project Kuiper. The company plans to launch approximately 3,200 satellites, positioning its network as a direct competitor to Starlink, which remains the dominant force in the space-based internet market.
Currently, Starlink operates more than 9,500 satellites and serves over nine million users worldwide. Importantly, the service contributes between 50% and 80% of SpaceX’s total revenue, underscoring its commercial success. Starlink’s offerings span individual users, enterprises, and government agencies, including U.S. national security operations through its specialized Starshield program.
In comparison, Amazon’s LEO network has deployed around 180 satellites so far and is targeting a similar customer base. Therefore, acquiring Globalstar could significantly accelerate Amazon’s infrastructure buildout, enhance spectrum access, and strengthen its competitive positioning in the rapidly expanding satellite internet market.
Meanwhile, SpaceX has confidentially filed for a U.S. initial public offering, according to sources familiar with the matter, potentially paving the way for one of the largest listings in history. Analysts suggest that a significant portion of SpaceX’s estimated $1.75 trillion valuation would be driven by its Starlink business, further emphasizing the growing importance of satellite connectivity in the global digital economy.
Amazon’s potential acquisition of Globalstar signals an intensifying race in the satellite broadband industry. As competition between Amazon and SpaceX escalates, strategic investments, partnerships, and acquisitions are likely to reshape the future of global internet infrastructure, unlocking new growth opportunities while expanding connectivity worldwide.
