【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 the market closed.

Apple Inc. is the core challenge

Even though the deal has strategic significance, the process may not be smooth. The British Financial Times, citing sources, said that the two sides are currently negotiating over the 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 network capacity for Apple to use, mainly for the “satellite messaging” feature that extends iPhone coverage beyond the range of cellular base stations. If Amazon wants to complete the acquisition, it would inevitably need to engage in in-depth talks with its competitor, Apple.

Satellite warfare heats up: Amazon Leo vs. SpaceX Starlink

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

Amazon Leo current status

• Satellites launched: more than 200.
• Final goal: operate more than 7,700 low-Earth orbit satellites.
• Core service: provide global high-speed internet service to fill the blind spots of traditional telecom networks.

M&A power struggle in the satellite communications market

As early as last year, Bloomberg reported that Globalstar was exploring sale opportunities and reaching out to potential buyers, including SpaceX. Now that Amazon has officially entered the picture, it shows that low-Earth orbit satellites have become a key battleground for tech giants aiming to develop 6G and global communication networks.

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