Amazon in Talks to Acquire Satellite Provider Globalstar, Shares Jump 20%

Amazon.com is in talks to acquire Globalstar Inc., the satellite communications provider in which Apple holds a strategic stake, according to a report from the Financial Times. Globalstar shares jumped more than 20% in late trading following the report. A deal would significantly expand Amazon's low Earth orbit infrastructure capabilities, adding Globalstar's satellite network to the company's existing Project Kuiper broadband constellation. Globalstar operates a fleet of LEO satellites used primarily for emergency messaging and IoT connectivity, services that complement Kuiper's planned broadband internet coverage. Apple's involvement adds complexity to any potential transaction. The iPhone maker entered a multi-year agreement with Globalstar in 2022 to power the Emergency SOS via Satellite feature on iPhones, and Apple has a minority equity stake in the company. Apple's stake and its long-term service contract would need to be addressed in any acquisition negotiations, according to sources familiar with the matter. Amazon declined to comment. Globalstar did not immediately respond to requests for comment. The reported talks come as the satellite broadband market heats up. SpaceX's Starlink has emerged as the dominant player in consumer LEO broadband, while Amazon's Kuiper has been ramping toward commercial service. Acquiring Globalstar would give Amazon an established network, existing spectrum licenses, and a base of enterprise and government customers. Globalstar's market capitalization was approximately $2 billion before the report, making it a relatively accessible acquisition target for Amazon, which had more than $88 billion in cash and equivalents as of its most recent quarter.