Amazon Negotiates $8.8B Globalstar Acquisition to Expand 7,700-Satellite Network
Amazon is negotiating an $8.8 billion takeover of Globalstar, which has a market cap of $8.81 billion and 800,000 mobile subscribers, to accelerate its fledgling LEO internet network. The deal faces talks over Apple’s 20% stake from a $1.5 billion 2024 investment and targets 7,700 satellites versus Starlink’s 9,600.
1. Deal Negotiations and Valuation
Amazon is in negotiations to acquire Globalstar for approximately $8.8 billion, matching Globalstar’s market cap of $8.81 billion. Globalstar operates a low-Earth-orbit satellite network offering voice, data and asset-tracking services to nearly 800,000 mobile subscribers as of end-2025.
2. Apple Stake Complexity
The transaction requires resolving terms around Apple’s 20% ownership, stemming from a $1.5 billion 2024 investment to bolster Globalstar’s ground infrastructure. Negotiators are focusing on valuation adjustments and governance rights tied to that stake.
3. Satellite Network Ambitions
Amazon’s Leo program currently has about 200 satellites in orbit and aims for commercial service later this year. The broader target is to deploy roughly 7,700 satellites to provide global coverage, with a July 2026 FCC deadline to launch an additional 1,600.
4. Competitive Landscape and Partnerships
Even post-acquisition, Amazon would trail SpaceX’s Starlink, which operates over 9,600 satellites and serves more than nine million users. Amazon has secured preliminary agreements with Delta Air Lines for 500 aircraft and JetBlue for fleet deployments starting in 2028.