Amazon is in talks to acquire satellite telecommunications group Globalstar, a deal that could bolster the e-commerce giant's ambitions to build its own low-orbit satellite business.
Amazon is in talks to acquire satellite telecommunications group Globalstar, a deal that could bolster the e-commerce giant's ambitions to build its own low-orbit satellite business.
The parties are still negotiating some complex aspects of the deal after lengthy discussions, according to people familiar with the matter. The situation is complicated by the fact that Apple owns a 20% stake in Globalstar, which, according to sources, has forced Amazon and Apple to negotiate directly with each other, writes Ars Technica.
“The acquisition of the satellite group will accelerate Amazon’s efforts to compete with Elon Musk’s SpaceX and its orbital internet service Starlink.
However, sources warn that the deal is not yet finalized, and negotiations could still change direction or break down altogether.
Globalstar, founded in 1991, has seen its stock skyrocket in recent months amid takeover rumors. Its market cap reached about $9 billion on Wednesday. The stock has risen about 230% in the past year as investors bet on the company to become a serious competitor to SpaceX.
Apple invested $1.5 billion in Globalstar in 2024, taking a 20 percent stake in the company. Under the terms of the deal, Globalstar committed to reserving 85 percent of its network capacity for the iPhone maker, which would enable the satellite text messaging service to operate in areas without cell tower coverage.
