Amazon Nears $9 Billion Globalstar Acquisition, Apple Stake Hurdle
Amazon is nearing a deal to acquire Globalstar for about $9 billion, driving GSAT shares up 12.4% in pre-market trading. Apple’s 20% stake and its reservation of 85% network capacity require separate negotiations, complicating the deal and bolstering Amazon’s competitive push against SpaceX’s Starlink.
1. Deal Overview
Amazon is in talks to acquire Globalstar in a transaction valuing the satellite company at roughly $9 billion. No agreement has been finalized and terms could change.
2. Apple Stake Complication
Apple holds a 20% stake acquired for $1.5 billion and has reserved 85% of Globalstar’s network capacity for its emergency texting feature, requiring separate negotiations.
3. Competitive Landscape
The acquisition would strengthen Amazon’s Project Kuiper, which currently has 180 satellites and needs 1,600 launches by July 2026, as it aims to compete with SpaceX’s Starlink constellation of over 10,000 satellites.
4. Investor Reaction
GSAT shares rose over 12% in pre-market trading on the news, reflecting investor optimism about improved infrastructure and competitive positioning under Amazon’s ownership.