Amazon nears Globalstar acquisition to challenge Starlink dominance

Tuesday 14 - 12:00

By: Dakir Madiha

Amazon nears Globalstar acquisition to challenge Starlink dominance

Amazon is preparing to acquire satellite operator Globalstar in a deal that could be announced within days, signaling a major escalation in its effort to compete in the low Earth orbit internet market dominated by SpaceX’s Starlink.

Discussions between the two companies have advanced in recent weeks. The proposed transaction values Globalstar at around $9 billion. Negotiations remain ongoing and no final agreement has been confirmed. The timeline could still shift if terms change or talks break down.

The acquisition would give Amazon immediate access to key assets. These include Globalstar’s L-band spectrum licenses, its network of ground stations, and an operational satellite infrastructure. These components could accelerate deployment of Amazon’s satellite internet project, now branded as Amazon Leo and previously known as Project Kuiper.

Amazon Leo currently operates about 200 satellites in orbit. The company plans to launch commercial services later this year. It still trails far behind Starlink, which operates more than 10,000 satellites and serves over 9 million users worldwide.

A major obstacle in the deal involves Apple’s stake in Globalstar. Apple holds a 20 percent share after investing $1.5 billion in 2024 to support satellite-based emergency SOS features on iPhones. Any acquisition would require Amazon to address this stake. Options include buying out Apple’s position or ensuring continued service for iPhone users under new ownership. None of the companies involved have publicly commented on these discussions.

The potential transaction has already influenced the satellite sector. Globalstar’s shares surged more than 15 percent in after-hours trading when early reports of the talks emerged. The company’s market value has since climbed to about $9.4 billion. Other satellite firms, including AST SpaceMobile, also saw gains as investor confidence in space-based connectivity strengthened.

For Amazon, the deal would mark its most significant move yet into satellite infrastructure. It aligns with a broader capital spending plan that could reach $200 billion by 2026, focused largely on artificial intelligence and cloud computing. The addition of Globalstar’s assets would strengthen Amazon’s position in a market expected to expand as demand for global internet coverage grows.