- Acquiring Globalstar shall accelerate Amazon’s satellite strategy.
- The move would position Amazon more directly against Starlink.
What happened
Amazon is in discussions to acquire satellite communications company Globalstar in a deal valued at about $9bn, according to a Financial Times report cited by Investing.com (Reuters)
Globalstar operates a low-Earth orbit satellite network providing voice, data and asset-tracking services to enterprise, government and consumer users.
The proposed valuation compares with Globalstar’s market capitalisation of $8.81bn at its last close. Globalstar’s shares jumped 24% to $85 in extended trading after the report.
Negotiations remain complex, with Apple’s 20% stake in Globalstar requiring separate approval—a hurdle that could extend the deal timeline significantly.
Why it’s important
The potential acquisition marks a strategic shift in Amazon’s satellite ambitions, from gradual in-house deployment towards accelerated expansion through acquisition. By acquiring an operational satellite network, Amazon would gain immediate access to infrastructure, spectrum and regulatory positioning.
This would position Amazon to compete more directly with SpaceX’s Starlink, which has already established early leadership in the LEO satellite broadband market.The move signals intensifying competition in low-Earth orbit networks, where scale, speed and spectrum access are becoming decisive advantages.
If completed, the deal could help reshape the competitive landscape by accelerating Amazon’s ability to close the gap with established players.
More broadly, it underscores how satellite infrastructure is becoming a critical extension of cloud and networking platforms.
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