Key Takeaways
- E-commerce giant Amazon is pursuing an acquisition of satellite communications provider Globalstar (GSAT) valued at approximately $9 billion.
- According to Bloomberg’s sources, an official announcement might come as soon as Tuesday, April 15.
- Shares of Globalstar climbed roughly 15.7% during premarket hours on Monday in response to the acquisition news.
- The deal faces potential complications due to Apple’s 20% ownership position in Globalstar, stemming from a $1.5 billion commitment made in 2024.
- Over the trailing twelve months, Globalstar stock has skyrocketed 273%, driven largely by persistent buyout rumors.
According to a Bloomberg report, Amazon has entered advanced negotiations to acquire satellite communications company Globalstar in a transaction valued near $9 billion. The news triggered a premarket surge of approximately 15.7% in GSAT shares on Monday.
Sources with knowledge of the discussions told Bloomberg that an official announcement could materialize as early as this Tuesday.
Should the acquisition go through, Amazon would gain immediate access to critical satellite infrastructure for its ambitious plans to deploy a low Earth orbit (LEO) satellite constellation — positioning itself as a legitimate competitor to SpaceX’s dominant Starlink network.
Amazon’s internal satellite initiative, known as Project Kuiper, currently maintains approximately 180 satellites orbiting Earth, a fraction of the more than 10,000 satellites deployed by SpaceX. Acquiring Globalstar would provide Amazon with an immediate leap forward in this competitive space race.
This latest Bloomberg coverage builds upon an earlier Financial Times report from earlier this month, which similarly indicated that Amazon was approaching a finalized agreement with Globalstar. The convergence of these reports has strengthened market sentiment that a deal is imminent.
Apple’s Ownership Creates Potential Obstacles
A significant challenge looms in the form of Apple’s substantial ownership position. The tech giant maintains approximately 20% of Globalstar’s equity following a $1.5 billion capital injection in 2024. This investment secured Globalstar’s satellite services for the iPhone’s emergency SOS functionality.
For Amazon to successfully complete this acquisition, direct negotiations with Apple regarding this ownership stake will be unavoidable. Given Apple’s dual role as both a major service customer and substantial shareholder, its position carries considerable weight in determining the deal’s outcome.
It remains unclear how Apple will respond to having a major competitor like Amazon potentially control a critical component of its iPhone emergency services infrastructure.
Shares Already on a Massive Rally
Globalstar has been anything but an under-the-radar opportunity. Over the past year, shares have exploded 273% higher, fueled predominantly by market speculation that its LEO satellite assets would attract acquisition interest from major technology players.
The satellite operator currently commands a market capitalization hovering around $9.41 billion, with typical daily trading activity averaging approximately 833,000 shares.
Given that the reported acquisition price sits near $9 billion, market participants are closely monitoring whether Amazon will offer a premium above current trading levels — and equally important, whether Apple will facilitate the transaction, exit its position, or present obstacles.
Heading into this week, Globalstar’s year-to-date gains stood at approximately 19.86%.
During Monday’s premarket session, GSAT shares were trading up roughly 15.7%.
