Amazon Negotiates Acquisition of Globalstar to Challenge Starlink Dominance

Amazon has entered advanced negotiations to acquire Globalstar, the Louisiana-based satellite telecommunications company, as the ecommerce and technology giant accelerates efforts to establish a competitive low-earth-orbit satellite network capable of rivalling SpaceX’s Starlink service.

Globalstar, which operates a constellation of low-earth-orbit communication satellites providing voice, data and asset-tracking services across enterprise, government and consumer markets, currently commands a market capitalisation of approximately USD 10 billion. The company’s shares have more than doubled in value over the past twelve months, rising 13.4 per cent to close at USD 77.73 in New York trading on Thursday, whilst Amazon’s stock declined 0.4 per cent to finish at USD 209.77.

The potential transaction faces significant complexity, primarily due to Apple’s substantial 20 per cent ownership stake in Globalstar. This shareholding has necessitated direct negotiations between Amazon and Apple, adding an additional layer of intricacy to the dealmaking process. Apple initially selected Globalstar as its satellite partner in 2022 to enable iPhone 14 users to transmit emergency messages from remote locations where traditional cellular networks remain unavailable.

Apple has committed substantial capital to the partnership, dedicating USD 450 million from its advanced manufacturing fund towards satellite infrastructure development in the initial phase. The technology company subsequently invested an additional USD 1.5 billion in Globalstar during 2024 to fund expansion of its iPhone communication services, with Globalstar allocating 85 per cent of its total network capacity to support Apple’s requirements.

The acquisition discussions emerge as Amazon progresses with Leo, formerly designated Project Kuiper, which targets deployment of 3,200 satellites operating at altitudes between 367 miles and 391 miles above Earth. The company has successfully positioned 180 satellites in orbit to date. Andy Jassy, Amazon’s chief executive, informed investors in February that the organisation was making rapid progress on the initiative, which aims to deliver connectivity to consumers, enterprises and governments in regions lacking broadband infrastructure.

Jassy highlighted the technical capabilities of Leo Ultra, describing it as the fastest satellite internet antenna ever constructed, capable of delivering simultaneous download speeds reaching one gigabit per second and upload speeds of 400 megabits per second. These specifications position Amazon’s network as the most direct competitive threat to Elon Musk’s Starlink operation, which currently maintains a constellation exceeding 9,500 satellites.

Starlink, operating as a division of SpaceX, services more than nine million users globally and generates between 50 per cent and 80 per cent of SpaceX’s total revenue. The service portfolio encompasses individual consumers, commercial enterprises and government entities, including United States national security agencies through its Starshield variant. SpaceX has recently filed for a United States initial public offering, potentially establishing what could become the largest stock market listing on record. Analysts estimate that much of SpaceX’s projected USD 1.75 trillion valuation would derive from its Starlink satellite business.

Globalstar reported revenue of USD 273 million for the most recent fiscal year, representing a nine per cent increase compared to the previous period, alongside a net loss of USD 11.6 million, improved from a loss of USD 50.2 million in 2025. Paul Jacobs, Globalstar’s chief executive, commented that the company occupies a unique position to deliver differentiated connectivity solutions combining satellite innovation, licensed spectrum and proprietary wireless technology to address evolving customer requirements worldwide.

The transaction, should it proceed to completion, would mark a significant consolidation within the low-earth-orbit satellite sector and intensify competition in the rapidly expanding space-based connectivity market. Jeff Bezos, Amazon’s executive chairman, separately owns Blue Origin, a space exploration company focused on reducing costs and increasing routine access to space, positioning him in direct competition with Musk across multiple aerospace ventures.

Neither Amazon nor Globalstar provided official comment regarding the ongoing negotiations when contacted.