Amazon in Talks to Acquire Globalstar, Intensifying Satellite Constellation Race

Shares of satellite operator Globalstar surged 12% in premarket trading following a report that Amazon is in active negotiations to acquire the company. This potential move would directly inject Amazon into the escalating battle to build and control low Earth orbit (LEO) satellite constellations, a strategic arena currently dominated by SpaceX's Starlink and other major players. The immediate market reaction signals high investor confidence in the deal's strategic value and its potential to reshape the competitive landscape.

The Financial Times, citing people familiar with the matter, reported that talks are ongoing but face significant complexities. A major hurdle is Apple's existing 20% ownership stake in Globalstar. The satellite company is a critical partner for Apple, powering the emergency satellite messaging feature on iPhones. Globalstar's current fleet consists of 24 satellites in a Walker-24 configuration, providing services for emergency communications, asset tracking, and IoT connectivity in remote areas—a far more limited scope than the high-speed broadband networks envisioned by Amazon's Project Kuiper.

An acquisition would grant Amazon immediate operational satellite assets and spectrum rights, accelerating its Project Kuiper ambitions to compete with Starlink. However, it would also entangle Amazon in a delicate partnership with Apple, a rival in consumer electronics and services. The negotiations highlight the intense pressure on tech giants to secure orbital infrastructure, not just for consumer internet, but for the foundational connectivity required for future IoT, logistics, and global data networks. The outcome will test the balance between competitive acquisition and complex, pre-existing strategic alliances in the space.