Amazon’s $8.8B Globalstar Bid Entangles Apple’s 20% Stake Negotiations
Amazon is in talks to buy satellite firm Globalstar for $8.8B, prompting negotiations over Apple’s 20% stake from its 2024 $1.5B investment in the company. Separately, Apple’s partnership with Alphabet’s Gemini to power Siri across 2.5B devices is drawing favorable market views against Amazon’s $200B AI spending plan.
1. Globalstar Acquisition Talks
Amazon has entered negotiations to acquire Globalstar at an $8.8 billion valuation, aiming to bolster its Leo satellite internet service which currently comprises roughly 200 satellites in low-Earth orbit.
2. Apple’s 20% Stake Role
Apple holds a 20% stake in Globalstar from its 2024 $1.5 billion investment, requiring complex negotiation over valuation, governance rights and the integration of Apple’s emergency services feature on iPhones.
3. AI Strategy Divergence
Apple is leveraging an Alphabet Gemini partnership to power Siri across 2.5 billion active devices, contrasting with Amazon’s aggressive plan to spend $200 billion on AI development through AWS in 2026.