Amazon in Talks to Acquire Globalstar, Challenging Starlink

Amazon is in advanced negotiations to acquire the satellite telecommunications group Globalstar in a deal valued at approximately $9 billion, according to reports published on April 1, 2026. The proposed acquisition represents a significant escalation in the ecommerce giant’s efforts to build its own low-earth-orbit satellite business, positioning the company to rival SpaceX’s dominant Starlink network. The Financial Times reported the ongoing talks citing people familiar with the matter, a development subsequently confirmed by Reuters.

Strategic Push for Satellite Dominance

The potential transaction underscores Amazon’s commitment to expanding its connectivity infrastructure through its Leo satellite programme, formerly known as Project Kuiper. As of the time of the report, Amazon has launched more than 180 Leo satellites into orbit. The company plans to deploy a constellation of more than 3,200 low-earth-orbit satellites designed to provide internet services similar to those offered by SpaceX. Acquiring Globalstar would provide Amazon with access to critical L-band and S-band spectrum licences, finite radio frequencies that cannot be replicated simply by launching additional hardware.

SpaceX currently operates the leading network in this sector with more than 9,500 satellites in orbit. Starlink services more than nine million users globally and generates between 50% and 80% of SpaceX’s revenue. Its services span individual consumers, businesses, and governments, including U.S. National security agencies through its Starshield variant. Amazon’s network would be the closest rival to Elon Musk’s Starlink if the acquisition proceeds, leveraging Globalstar’s decades of operational expertise and existing ground infrastructure serving enterprise, government, and consumer markets globally.

Apple Stake Complicates Negotiations

While the strategic rationale for the deal is clear, significant complexities remain in finalizing an agreement. One major complicating factor is Apple’s ownership of a 20% stake in Globalstar. In 2024, Apple invested $1.5 billion in the satellite company, acquiring the equity position in a deal that enabled Globalstar to order additional satellites. This investment underpins Apple’s Emergency SOS via Satellite feature on iPhone 14 and later models as well as the Apple Watch Ultra.

The existing relationship between Apple and Globalstar has necessitated separate negotiations between Amazon and Apple regarding the potential acquisition. Reports indicate that Amazon and Globalstar were still negotiating some of the complexities of a potential deal after lengthy talks as of April 1, 2026. Nothing has been signed, and both Amazon and Globalstar declined to comment on the reports. Globalstar did not immediately respond to a Reuters request for comment regarding the speculation.

Market Reaction and Financial Context

News of the potential acquisition triggered immediate movement in the stock market. Globalstar’s shares, which have more than doubled in market value over the past year, surged 12.3% in premarket trading on Thursday, April 2, 2026. In contrast, Amazon shares fell nearly 2% during the same period. Globalstar had a market cap of $8.81 billion as of the last close prior to the news breaking, aligning closely with the reported $9 billion valuation of the proposed deal.

Financially, Globalstar has shown recent stability prior to these reports. The Covington, Louisiana-headquartered company turned profitable in 2025 and recorded $273 million in revenue during that period. The company is known for its low-earth-orbit communication satellites and offers voice, data, and asset-tracking services across various sectors. A deal would give Amazon’s Leo satellite programme access to Globalstar’s operational infrastructure, acting as a shortcut in its race to rival SpaceX’s Starlink.

Ongoing Discussions and Future Steps

Despite the advanced nature of the talks, the situation remains fluid. The Financial Times described the discussions as lengthy, noting that the two sides are still working through the complexities of a potential deal. The involvement of Apple adds a layer of regulatory and contractual scrutiny that must be resolved before any transaction can be completed. Amazon is ramping up efforts to build its own low-earth-orbit satellite business, and this acquisition is viewed as a pivotal step in that strategy.

Industry observers note that the reported deal comes as Amazon deploys its Leo constellation to target similar customers as Starlink, including individual consumers and businesses. The integration of Globalstar’s spectrum licences would address a key bottleneck in satellite communications, providing Amazon with assets that are strategically valuable and finite. As negotiations continue, the market will watch closely to see if the two companies can resolve the complications involving Apple’s stake and finalize an agreement that reshapes the satellite internet landscape.