【AMZN】Amazon reportedly plans to acquire Globalstar to expand into the low Earth orbit satellite market, competing with SpaceX Starlink

E-commerce giant Amazon is reportedly in talks to acquire satellite communications provider Globalstar to strengthen its low-Earth-orbit satellite project Amazon Leo (formerly known as Project Kuiper) and to challenge billionaire Elon Musk’s space exploration technology company SpaceX. Driven by acquisition rumors, Globalstar’s stock surged more than 20% after trading hours.

Apple Inc. as the Core Challenge

Even though the deal would have strategic significance, the process may not be smooth sailing. The UK’s Financial Times, citing sources, reported that the two sides are currently negotiating details, with the biggest variable being Apple Inc.

Because Apple invested $1.5 billion in Globalstar in 2024 and holds a 20% stake, Globalstar agreed to retain 85% of its network capacity for Apple’s use, mainly for iPhone “satellite short messaging” coverage outside the range of cell towers. If Amazon wants to complete the acquisition, it would likely need to engage in extensive negotiations with its competitor, Apple.

Satellite “Wars” Heat Up: Amazon Leo vs. SpaceX Starlink

If Amazon successfully brings Globalstar under its umbrella, it would directly accelerate the competitive landscape between its Amazon Leo and Elon Musk’s SpaceX and its Starlink service.

Amazon Leo Current Status

• Satellites launched: more than 200.
• Final goal: to operate more than 7,700 low-Earth-orbit satellites.
• Service core: providing global high-speed internet access to fill the blind spots of traditional telecommunications networks.

M&A Tug-of-War in the Satellite Communications Market

As early as last year, Bloomberg reported that Globalstar was looking for opportunities to sell and was in touch with potential buyers, including SpaceX. Now that Amazon has officially come to the forefront, it shows that low-Earth-orbit satellites have become a must-fight battleground for tech giants planning 6G and global communications networks.

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