Amazon Eyes $9B Globalstar Deal to Challenge Starlink
Globalstar surged 24% on reports Amazon is in advanced talks to acquire the satellite company. Apple's 20% stake complicates the deal.
Amazon is in advanced talks to acquire Globalstar for approximately $9 billion, according to reports from the Financial Times. The deal would give Amazon immediate access to spectrum licenses and an operating satellite network as it races to catch up with SpaceX's Starlink.
Globalstar shares surged 24% on the news, hitting an 18-year high. The stock had languished for years before this week's M&A speculation revived investor interest in the satellite communications provider.
The Strategic Logic
Amazon's satellite project, now branded Amazon Leo after being called Project Kuiper, is running behind schedule. The company must launch half of its planned 3,232-satellite constellation by July 30, 2026 to meet FCC deadlines. As of early April, Amazon has only 212 satellites in orbit—about 1,400 units short of the requirement.
Acquiring Globalstar would provide:
- Spectrum licenses: The scarcest resource in satellite communications
- An operating network: Roughly 24 satellites already in service
- Technical expertise: Engineers who've built and operated satellite infrastructure
- Time: The most valuable asset when facing a regulatory deadline
Starlink has a massive head start with over 6,000 satellites in orbit and 10 million subscribers. The gap is large enough that organic growth alone likely won't close it. Amazon needs a shortcut.
The Apple Complication
There's a significant obstacle: Apple owns 20% of Globalstar.
In 2024, Apple invested $1.5 billion in exchange for equity and a commitment that 85% of Globalstar's network capacity would power iPhone features like Emergency SOS via satellite. That feature has become a meaningful differentiator for Apple, and the company won't easily surrender control of the infrastructure behind it.
Any Amazon acquisition would require Apple's blessing—or at least its cooperation. The tech giants aren't natural partners, and Apple has strong incentives to keep Globalstar independent or acquire it themselves.
For more on how the satellite industry is evolving, see our IPO coverage of space-related companies.
Options Activity
The news triggered a wave of options trading. GSAT contracts hit 9,445 volume on Friday, roughly 20x the average daily activity. Calls outpaced puts 5-to-1, reflecting the bullish sentiment around a potential premium bid.
| Strike | Expiration | Volume | Open Interest |
|---|---|---|---|
| $80.00 | Apr 17, 2026 | 3,392 | 2,862 |
| $90.00 | May 15, 2026 | 1,016 | 99 |
The strikes suggest traders are positioning for the deal to close at a premium well above the current share price. Whether that optimism is warranted depends entirely on whether Amazon can satisfy Apple.
Implications for Starlink and SpaceX
This deal, if completed, would mark a significant escalation in the satellite broadband war. SpaceX just filed for a $1.75 trillion IPO targeting June. Having Amazon make an aggressive move into the space could complicate that valuation story—or validate it by proving the market opportunity is real enough to attract a $9 billion acquisition.
Competition tends to benefit consumers. More satellite capacity means better rural broadband, more redundancy for emergency services, and eventually lower prices. But it also means margin compression for the players involved.
What Happens Next
Neither Amazon nor Globalstar has confirmed the talks. These situations can take months to resolve, and plenty of reported deals fall apart during due diligence.
Watch for:
- Apple's response: Will they block, compete, or negotiate for continued service access?
- Regulatory review: The FCC and possibly DOJ would need to approve
- Amazon's FCC deadline: July 30 is approaching fast
The stock's 24% move already prices in significant deal probability. If negotiations collapse, expect a sharp reversal. If they proceed to a definitive agreement, there may be modest upside to whatever premium Amazon offers.
For now, this is a stock to watch rather than chase. The outcome depends on variables—Apple's intentions, regulatory posture, and Amazon's willingness to pay—that aren't yet knowable.