Reuters has exclusively reported that Amazon is in talks to acquire satellite communications company Globalstar (GSAT) at a transaction value of approximately $9 billion. The news sent Globalstar's after-hours stock price surging 20% to $85 per share before pulling back to $76.7.
Amazon's objective is clear: absorbing Globalstar's satellite spectrum and ground infrastructure to inject vital resources into its satellite internet project Amazon Leo (formerly known as Project Kuiper). This move is seen as a way to rapidly close the gap with SpaceX's Starlink in the low-Earth orbit satellite race.
Apple's 20% Stake Creates a Complex Puzzle
However, the deal must clear a major hurdle: Apple. According to Reuters, Apple invested $1.5 billion in Globalstar in 2024, acquiring roughly a 20% stake, and integrated Globalstar's satellite network into the Satellite Emergency SOS feature on iPhone 14 and later models. As a result, any acquisition of Globalstar will require simultaneous negotiations with Apple.
The Financial Times noted that if the deal closes at the $9 billion valuation, Apple's stake would gain approximately $1.1 billion on paper. But whether Apple is willing to cede strategic control is another question. Apple has been steadily expanding its satellite communications capabilities, from emergency-only to everyday connectivity, with Globalstar as the core of that strategy.
An industry analyst told Reuters that the key isn't price but how Amazon convinces Apple — either by buying out Apple's stake or reaching a long-term cooperation agreement to ensure uninterrupted iPhone satellite functionality.
Amazon Leo vs. Starlink: Satellite Broadband Competition Heats Up
Amazon's satellite network ambitions are not new. It has already deployed roughly 200 satellites in low Earth orbit, with a long-term goal of building a constellation of about 7,700 satellites. Commercial service is expected to launch later in 2026.
But compared to SpaceX's Starlink, Amazon trails significantly. Starlink now has over 6,000 operational satellites and more than 4 million global subscribers. SpaceX is also pushing forward with an IPO, with valuations reaching as high as $1.5 trillion. The Financial Times argues that acquiring Globalstar would give Amazon immediate access to mature satellite spectrum and ground station networks, substantially shortening the gap with Starlink.
Tech Giants' Space Race Gains a New Dimension
If the deal goes through, the competitive landscape of the satellite internet industry will tighten further: Amazon, SpaceX, and Apple all jockeying on the same track. Yet Apple and Amazon have fundamentally different needs in satellite communications — Apple focuses on lightweight satellite connectivity for smartphones, while Amazon targets broadband-grade satellite internet services. Reuters suggests this difference could either leave room for an agreement or spark a breakdown in negotiations.