Globalstar Nears $9 Billion Amazon Deal In Bid To Challenge Starlink
Amazon (NASDAQ: AMZN) is in advanced talks to acquire satellite operator Globalstar (NASDAQ: GSAT) in a roughly $9 billion transaction that would accelerate its push into low-Earth-orbit (LEO) broadband and directly challenge SpaceX’s Starlink. A deal could be announced as soon as Tuesday, highlighting how urgently Amazon is moving to close the technology and scale gap with Elon Musk’s satellite network.
Strategic Fit With Project Kuiper / Amazon Leo
The proposed takeover would fold Globalstar’s constellation, ground infrastructure and spectrum into Amazon’s LEO internet initiative, now branded Amazon Leo (formerly Project Kuiper). Rather than building everything from scratch, Amazon would be “trading capital for time” by buying an operational network, spectrum rights and a seasoned satellite operations team.
Spectrum, Infrastructure And Direct-to-Device Edge
Globalstar controls valuable L‑band and S‑band spectrum that is well suited for mobile satellite services and emerging direct‑to‑device (D2D) offerings, including satellite-to-phone connectivity. The company also operates more than 20 gateway stations worldwide, giving Amazon a ready-made ground network to support consumer and enterprise connectivity.
Apple Stake Complicates Negotiations
Talks are complicated by Apple (AAPL), which holds about a 20% stake in Globalstar following a roughly $1.5 billion investment to power iPhone emergency SOS and satellite messaging features. Apple reportedly uses the vast majority of Globalstar’s network capacity, meaning any deal must preserve mission‑critical iPhone services while integrating Amazon’s high‑throughput broadband traffic.
Market Reaction And Financial Terms
Reports of Amazon’s interest have driven a sharp rally in Globalstar shares, which are up more than 200% over the past year and jumped again on the latest M&A headlines. Bloomberg has since reported that Amazon agreed to acquire Globalstar for $90 per share, offering holders either cash or Amazon stock capped at the same value, with closing targeted for 2027.
Competitive Pressure On Starlink And Other Players
For Amazon, this deal would significantly strengthen its hand against SpaceX’s Starlink, which currently dominates LEO broadband with tens of thousands of satellites already deployed. The move also raises competitive stakes for other satellite connectivity names such as Iridium (IRDM), AST SpaceMobile (ASTS), and OneWeb / Eutelsat, all vying for slices of global D2D and mobility markets.
Investor Takeaways
Globalstar, which recently turned profitable with growing satellite service revenue, would gain a deep-pocketed strategic owner and clearer long-term funding path if the transaction closes. For Amazon shareholders, the acquisition is a high-capex bet that LEO connectivity, bundled with Prime, AWS, and consumer hardware, can become a meaningful growth pillar over the next decade.
