TLDR
- Globalstar stock jumped more than 15% in after-hours trading following a Financial Times report that Amazon is in talks to acquire the satellite communications company.
- Negotiations are ongoing, though some deal complexities remain unresolved after lengthy talks between the two companies.
- Apple’s 20% stake in Globalstar — acquired via a $1.5 billion investment in 2024 — is one of the key complicating factors in the deal.
- A potential acquisition would support Amazon Leo, its nascent internet-from-space service, which has launched around 200 satellites since April last year.
- Bloomberg had previously reported in October that Globalstar was exploring a sale, including early talks with SpaceX.
Globalstar (GSAT) opened up around 12% on the report, with after-hours gains reaching over 15%. Amazon (AMZN) slipped 2.38% in after-hours trading.
Amazon declined to comment. Representatives from Globalstar did not immediately respond to requests for comment.
The Financial Times broke the story, citing people familiar with the matter. It said the two companies have been in talks for some time but are still working through several deal complexities.
$AMZN is in talks to acquire $GSAT.
Amazon is making a heavy push to scale Project Kuiper and directly challenge Starlink. Buying Globalstar gives them an immediate, massive foothold in Low Earth Orbit (LEO) connectivity.$GSAT shares jumped over 15% on the news, pushing the… pic.twitter.com/mrlD32lcKB
— Karol Kozicki (@k2__investment) April 1, 2026
One of those complications is Apple’s position in Globalstar. Apple took a 20% stake in the company in 2024 as part of a $1.5 billion investment. That deal was aimed at boosting Globalstar’s satellite constellation and ground infrastructure. Any Amazon acquisition would require navigating that existing relationship.
Amazon’s Push Into Low Earth Orbit
Amazon has been building out its own satellite internet service, called Amazon Leo. Since last April, the company has launched roughly 200 satellites into low Earth orbit and is targeting commercial service later this year.
The broader plan is a constellation of around 7,700 satellites. But the company has hit some delays. In January, Amazon asked the Federal Communications Commission for more time to meet a deadline requiring it to launch approximately 1,600 satellites by July 2026.
Acquiring Globalstar could give Amazon a meaningful boost — both in terms of existing satellite infrastructure and spectrum rights — as it tries to close the gap with SpaceX.
SpaceX’s Starlink is the dominant player in satellite internet, with more than 10,000 satellites in orbit and over 9 million subscribers. Amazon is a distant second for now, and a deal like this would likely accelerate its timeline.
Globalstar Had Already Been Exploring a Sale
This isn’t the first time Globalstar’s name has come up in acquisition talk. Bloomberg reported back in October that the company was exploring a potential sale, including early-stage discussions with Elon Musk’s SpaceX.
That deal never materialised. The conversations with Amazon appear to be more advanced, though no agreement has been reached.
Globalstar provides satellite-based voice and data services and is perhaps best known to consumer audiences through its partnership with Apple, which uses the company’s network to power the Emergency SOS via satellite feature on iPhones.
That Apple relationship makes any potential deal more layered than a straightforward buyout. Amazon would effectively be acquiring a company in which one of its biggest tech rivals holds a 20% stake.
For now, both sides remain in negotiations. The Financial Times noted that while talks have been lengthy, several complexities still need to be resolved before any deal can be finalised.
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