Amazon Nears Globalstar Acquisition to Boost 7,700-Satellite Leo Network
Amazon is in advanced talks to acquire Globalstar, whose market cap has quadrupled to $9.4 billion and whose shares rose 19% premarket, to accelerate its 7,700-satellite Leo network build-out. Globalstar’s network powers Apple’s iPhone emergency feature following a $1.5 billion investment for a 20% stake in 2024.
1. Advanced Acquisition Talks
Amazon is in advanced discussions to acquire Globalstar for its operational satellite network. Talks could conclude as early as Tuesday, and Globalstar shares surged 19% in pre-market trading after the news, reflecting its $9.4 billion market valuation.
2. Strategic Satellite Network Build-out
The acquisition would accelerate Amazon's Leo low-earth-orbit satellite rollout, helping it reach a planned constellation of 7,700 satellites. Amazon has sought FCC approval to waive or extend its July deadline to launch 1,600 satellites, underscoring the urgency of expanding coverage.
3. Globalstar's Assets and Apple Partnership
Globalstar operates nearly 800,000 mobile satellite service subscribers and powers iPhone emergency features through its existing network. Apple invested $1.5 billion for a 20% stake in 2024, potentially giving the smartphone maker influence over Globalstar's strategic direction.