Amazon is reportedly exploring a $9 billion acquisition of satellite operator Globalstar, aiming to accelerate its expansion into low-Earth orbit connectivity services.
Citing sources familiar with the matter, negotiations remain ongoing, with both sides addressing complex structural and strategic considerations following extended discussions.
Globalstar shares surged over 12% in premarket trading, reflecting investor optimism. Meanwhile, Amazon stock dipped nearly 2% as markets weighed the potential financial impact.
The Louisiana-based company operates a network of low-Earth orbit satellites, delivering voice, data, and asset-tracking solutions across enterprise, government, and consumer sectors.
A key hurdle involves Apple’s 20% stake in Globalstar, requiring multi-party negotiations that could influence deal structure and final terms.
The move aligns with Amazon’s broader satellite ambitions through its LEO initiative, targeting a constellation of 3,200 satellites to build a competitive global network.
This positions Amazon against the market leader, whose extensive infrastructure already serves millions of users worldwide and drives a significant share of industry revenue.
Analysts note the satellite connectivity market is entering a high-stakes growth phase, with valuations increasingly tied to scalability, coverage, and long-term commercial demand.
