Amazon Negotiates $9 Billion Acquisition of Globalstar to Boost Satellite Internet

Amazon is in talks to acquire satellite telecommunications company Globalstar in a deal valued at approximately $9 billion, the Financial Times reported on Wednesday, citing people familiar with the matter. Globalstar's shares rose 24% to $85 in extended trading following the report, according to Reuters, with the company's market capitalization standing at $8.81 billion at the prior close. The potential acquisition would significantly accelerate Amazon's effort to build a competitive satellite internet service under its Leo program, formerly known as Project Kuiper. Both sides were still negotiating complex aspects of the deal after lengthy talks, the Financial Times reported. Amazon and Globalstar did not immediately comment on the reports.

Apple's 20% stake complicates the path to a deal A significant complicating factor in the negotiations has been Apple's 20% ownership stake in Globalstar, which has required parallel negotiations between Amazon and Apple, according to the Financial Times. Apple invested approximately $1.5 billion in Globalstar in 2024 to strengthen the company's satellite infrastructure. In exchange for that investment, Globalstar committed to providing 85% of its network capacity to Apple for use in iPhone satellite services, allowing consumers to send texts and contact emergency responders when out of cellular range, Bloomberg reported. Apple likely has a say in Globalstar's future given the scale of its involvement, people familiar with the matter told Bloomberg. Globalstar reported 2025 revenues of $273 million, a 9% increase from the prior year, and had nearly 800,000 subscribers to its mobile satellite services at the end of 2025. The company's market value has more than doubled over the past year, according to Il Sole 24 ORE.

Globalstar operates a satellite constellation in low Earth orbit and offers voice, data, and asset tracking services. Bloomberg News reported last year that Globalstar was exploring a potential sale and had held early discussions with SpaceX among other prospective buyers. Amazon established its satellite internet subsidiary in 2019 under the codename Project Kuiper, rebranding it as Amazon Leo in November 2025. In February 2026, Amazon requested a two-year extension from the Federal Communications Commission for the launch of 1,600 satellites, originally scheduled for July, citing a shortage of launch capacity.

Amazon trails Starlink by thousands of satellites in orbit The satellite gap between Amazon and SpaceX's Starlink remains substantial. Amazon has deployed more than 200 internet satellites under its Leo program, according to Bloomberg, while Starlink operates more than 9,600 satellites and serves more than 10 million active users. According to the industry service Satellitemap, as cited by newsORF.at, Globalstar itself operates 88 active satellites. In the final expansion stage of the Leo program, Amazon aims to operate 3,200 satellites, which would make it Starlink's largest competitor, newsORF.at reported. Amazon has also stated its goal of eventually operating more than 7,700 low-orbit satellites. Starlink contributes between 50 and 80 percent of SpaceX's revenue, according to newsORF.at, and SpaceX is reportedly facing a record-breaking initial public offering. Adding Globalstar's existing network and spectrum licenses would give Amazon a significant boost in closing that gap.

FCC extension request signals Amazon's urgency to scale up Amazon's pursuit of Globalstar reflects broader urgency within the company to scale its satellite operations faster than its current launch pace allows. In February 2026, Amazon asked the FCC for a two-year extension to launch 1,600 satellites, a deadline originally set for July, citing a scarcity of launch capacity that has slowed the development of its service. Acquiring Globalstar would provide Amazon not only with additional satellites already in orbit but also with existing spectrum licenses and a subscriber base of nearly 800,000 customers. Bloomberg had previously reported in October that Globalstar was exploring a potential sale and had held early talks with SpaceX, among other potential suitors, making Amazon's approach part of a broader competitive dynamic for control of the asset. The deal, if completed, would position Amazon's Leo program as the most direct rival to Starlink in the global satellite broadband market.