Amazon is reportedly in advanced discussions to acquire United States-based satellite telecommunications company Globalstar as part of efforts to strengthen its position in the growing satellite internet market and challenge Elon Musk’s Starlink network.
According to sources familiar with the ongoing negotiations, both companies are currently working through the more complex aspects of the proposed acquisition deal. However, no final agreement has been reached, and discussions could still collapse if terms are not successfully concluded.
The development comes at a time when SpaceX, the aerospace company owned by Elon Musk and operator of the Starlink satellite internet service, has filed documents for what could become the largest public stock offering in history.
Starlink currently operates more than 10,000 satellites, providing internet connectivity to users across the globe, particularly in areas with limited access to traditional broadband infrastructure.
Amazon, founded by billionaire Jeff Bezos, is also building its own competing satellite network known as Amazon Leo, which already has more than 200 satellites in orbit.
Globalstar, with an estimated market value of about $9 billion, operates a smaller low-Earth-orbit satellite constellation and has increasingly become a strategic asset in the race for space-based internet services.
One of the major factors reportedly complicating the negotiations is Apple’s 20 percent stake in Globalstar, a development that means any potential acquisition deal may require separate negotiations involving the iPhone maker.
This ownership structure is believed to be one of the reasons discussions have taken longer than expected.
While the companies involved have not officially confirmed the talks, Globalstar stated that it does not comment on market speculation or rumours, while Amazon has declined to issue a response.
The company’s stock has seen a remarkable surge, rising by nearly 230 percent over the past year, amid growing investor interest and speculation over a possible sale.
Earlier reports had also suggested that Globalstar had been exploring strategic sale options with several potential buyers, including SpaceX.
Meanwhile, fresh reports indicate that SpaceX’s confidential initial public offering filing could place the rocket and satellite company on track to list its shares by July, with a possible valuation of $75 billion or more.
Amazon in Talks to Acquire Globalstar in Move to Challenge Starlink
