Globalstar Spikes on Reported Amazon Buyout Talks, Hits 18‑Year High
Globalstar Inc. (NYSE: GSAT) shares ripped to their highest level in roughly 18 years after the Financial Times reported that Amazon (NASDAQ: AMZN) is in talks to acquire the satellite operator. The stock jumped more than 20% in after‑hours and pre‑market trade as investors priced in the possibility of a deal that could value Globalstar at about 9 billion dollars, according to multiple media reports.
Strategic fit for Amazon’s LEO ambitions
A potential acquisition would plug Globalstar’s existing low‑Earth‑orbit constellation, spectrum, and ground network into Amazon’s Project Kuiper (now Amazon Leo) broadband push, accelerating its ability to compete with SpaceX’s Starlink service. Amazon has already launched around 200 Kuiper satellites and plans thousands more, but buying Globalstar could shorten timelines by adding operational assets and experienced satellite staff on day one.
Apple’s 20% stake complicates negotiations
One key wrinkle is Apple (NASDAQ: AAPL), which acquired a 20% stake in Globalstar in 2024 as part of a roughly 1.5 billion dollar investment tied to iPhone emergency SOS via satellite and related upgrades to the Globalstar constellation. Any Amazon‑Globalstar deal would require working through Apple’s ownership and long‑term commercial arrangements, adding complexity and making deal closure far from certain.
Speculation, not a signed deal
Both Amazon and Globalstar have declined to comment publicly, and sources cited by the FT and other outlets stress that talks are ongoing and could still fall apart. Globalstar had already been exploring strategic options, including a potential sale and prior preliminary discussions with SpaceX, which helped set the stage for the latest round of M&A speculation.
Investor takeaways for GSAT
For GSAT shareholders, the reported talks highlight the strategic value of Globalstar’s spectrum and satellite assets to big‑tech players racing to lock down space‑based connectivity. That said, the stock’s move embeds a takeover premium that could unwind if negotiations stall or a deal emerges on terms less generous than the market is currently assuming.
