Amazon nears $9 bn deal to buy Globalstar to accelerate satellite internet business

Amazon is closing in on a deal to acquire Globalstar, according to news reports including Bloomberg News and Reuters, marking a potentially transformative move in the fast-growing satellite broadband market.

Amazon satellite

Advanced talks signal strategic urgency

Recent news reports indicate that Amazon is in advanced negotiations with Globalstar, with discussions progressing quickly toward a possible agreement on Tuesday.

The timing reflects intensifying competition in low Earth orbit satellite networks, where speed of deployment and access to spectrum are critical differentiators.

Strengthening Amazon’s satellite strategy

Amazon’s interest in Globalstar is closely tied to its satellite initiative, Project Kuiper, which aims to deliver high-speed internet globally through a constellation of low Earth orbit satellites. While Amazon has made progress in launching satellites, it still trails industry leader SpaceX and its Starlink network by a wide margin.

Acquiring Globalstar would provide Amazon with immediate access to valuable spectrum rights, satellite infrastructure, and an established base of enterprise and government customers. This could significantly accelerate Amazon’s rollout timeline and reduce the need to build certain capabilities from scratch, allowing it to compete more effectively in the global broadband race.

Apple partnership adds complexity

A key factor influencing the negotiations is Globalstar’s relationship with Apple. Apple has invested heavily in Globalstar and relies on its satellite network to power features such as emergency SOS and messaging services on iPhones.

Apple holds a significant stake in Globalstar and has committed more funding to support its satellite infrastructure. This partnership introduces additional complexity to Amazon’s potential acquisition, as any deal would likely require alignment with Apple’s strategic interests or renegotiation of existing agreements.

Reports from Reuters and the Financial Times have valued the potential transaction at roughly $9 billion, reflecting the strategic importance of satellite spectrum and infrastructure assets. Market reaction has been swift, with Globalstar’s stock surging amid speculation of a takeover.

The acquisition, if completed, would represent one of the largest deals in the satellite communications sector in recent years. It would also signal a shift toward consolidation as major technology companies seek to control key components of global connectivity infrastructure.

Rising competition in satellite broadband

Amazon’s move comes as competition in satellite internet intensifies globally. SpaceX’s Starlink currently dominates the market with thousands of satellites in orbit and a rapidly growing subscriber base. Other players are also exploring satellite-based services, particularly to bridge connectivity gaps in remote and underserved regions.

By acquiring Globalstar, Amazon could significantly narrow the gap with Starlink, leveraging both its cloud ecosystem and satellite capabilities to deliver integrated connectivity solutions for consumers, enterprises, and governments.

BABURAJAN KIZHAKEDATH

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