Key Highlights
- Reports indicate Amazon is in final-stage negotiations to purchase satellite company Globalstar (GSAT) for approximately $9 billion.
- According to Bloomberg sources, an announcement could come as soon as Tuesday, April 15.
- Shares of Globalstar climbed approximately 15.7% during premarket hours after the news broke.
- The acquisition faces complications due to Apple’s 20% ownership position in Globalstar, stemming from a $1.5 billion 2024 investment.
- Over the past year, Globalstar shares have skyrocketed 273%, driven largely by acquisition speculation.
According to a Bloomberg report, Amazon has entered advanced negotiations to purchase satellite communications provider Globalstar in a transaction valued at approximately $9 billion. The news triggered a sharp 15.7% spike in GSAT shares during Monday’s premarket session.
Sources with knowledge of the discussions told Bloomberg that the companies could unveil the agreement as early as this Tuesday.
Should the acquisition move forward, Amazon would gain immediate access to critical satellite infrastructure for its low Earth orbit (LEO) connectivity ambitions — positioning itself as a formidable competitor to SpaceX’s Starlink network.
Amazon’s satellite initiative, known as Project Kuiper, currently operates roughly 180 satellites in orbit. This pales in comparison to SpaceX‘s constellation of over 10,000 satellites. Acquiring Globalstar would provide Amazon with a substantial leap forward in closing that gap.
This Bloomberg report comes on the heels of a Financial Times article earlier this month that similarly suggested Amazon was closing in on a Globalstar deal. The consistency between both reports has strengthened investor conviction that a transaction is imminent.
Apple’s Ownership Creates Potential Hurdle
A significant complication lies in Apple’s existing ownership stake. The tech giant holds roughly 20% of Globalstar following a $1.5 billion capital injection in 2024. This investment was structured to support satellite connectivity capabilities for iPhone emergency SOS features.
For the deal to proceed, Amazon must reach an agreement with Apple regarding this substantial equity position. This negotiation carries considerable weight, given that Apple serves both as a major Globalstar customer and a significant shareholder with strategic interests in the company’s services.
How Apple will react to Amazon — a rival across numerous product categories — acquiring Globalstar remains unclear.
Shares Already Trading at Elevated Levels
Globalstar has been firmly on investors’ radars for some time. Over the trailing twelve months, the stock has surged 273%, propelled primarily by speculation that its LEO satellite assets would attract buyer interest.
The company currently holds a market capitalization near $9.41 billion, with typical daily trading volumes around 833,000 shares.
With the potential deal valued at approximately $9 billion, market participants are monitoring whether Amazon will offer a premium to current trading levels — and what role Apple will ultimately play as either a cooperative partner, a willing seller, or an obstacle to completion.
Year-to-date, Globalstar shares have advanced roughly 19.86% entering this week.
During Monday’s premarket trading session, GSAT was changing hands up about 15.7%.
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