Amazon is in advanced discussions to buy Globalstar, a satellite telecommunications company with a market capitalization of approximately $8.8–9 billion, as the e-commerce and cloud computing giant accelerates its push into low-Earth orbit (LEO) satellite services to compete directly with Elon Musk’s Starlink, according to a Financial Times report. The potential deal would significantly bolster Amazon’s satellite ambitions beyond its existing Project Kuiper initiative, which aims to deploy thousands of LEO satellites for broadband internet. Globalstar operates a constellation of LEO satellites providing voice, data, and asset-tracking services to enterprise, government, and consumer markets. Negotiations between Amazon and Globalstar have been lengthy, and the two sides continue to discuss certain complexities of a potential transaction. No final agreement has been reached, and the talks could still shift or collapse, sources familiar with the matter told the FT. A key complicating factor is Apple’s approximately 20% stake in Globalstar. Apple invested around $1.5 billion in the company in 2024 (including equity and infrastructure support) to power its Emergency SOS via satellite feature on iPhones and Apple Watches, as well as related connectivity services. Any deal would require negotiations between Amazon and Apple to address Apple’s ownership, existing contracts for network capacity, and priority access rights. Globalstar shares surged more than 20% (with some reports citing gains up to 24%) in extended trading following the news, reaching levels described as an 18-year high in after-hours activity. The stock had already more than doubled in value over the past year amid earlier sale speculation. Globalstar has long been a smaller player in the satellite sector but gained prominence through its partnership with Apple. The tie-up enabled Apple to offer emergency texting and connectivity in areas without cellular coverage, relying on Globalstar’s existing satellite infrastructure. Amazon’s interest aligns with a broader industry race in satellite broadband and direct-to-device (D2D) communications. Its Project Kuiper is positioned as a rival to Starlink, which has deployed thousands of satellites and serves millions of users for high-speed internet in remote locations. Acquiring Globalstar could provide Amazon with an operational satellite network, spectrum assets, and expertise to accelerate its rollout and expand into new services. Recent rumors had also swirled around possible interest from SpaceX/Starlink, with some analysts suggesting Globalstar’s chairman may have used an Amazon offer to solicit competing bids. However, the latest FT reporting indicates Amazon is currently in the lead for a potential acquisition. If completed, the deal would represent a major consolidation move in the satellite sector and could intensify competition between Amazon, SpaceX, and other players like those involved in Project Kuiper and Starlink. It might also raise regulatory scrutiny, given the strategic nature of satellite spectrum and infrastructure. For Apple, the transaction could introduce a new dynamic: its emergency satellite service might eventually operate under infrastructure controlled by a major competitor in consumer electronics, cloud services, and retail. Analysts note that preserving Apple’s service agreements and access rights would likely be a priority in any talks. Amazon has not publicly commented on the reports, and Globalstar similarly has not issued a statement. The development comes as the satellite communications industry sees heightened activity, with growing demand for global connectivity, remote broadband, and emergency services. • Record revenue: $273 million, up 9% year-over-year — the fourth consecutive year of record highs. This was driven mainly by higher wholesale service revenue (largely from the Apple partnership) and growing subscriber equipment sales. • Net loss sharply narrowed: From about $73.8 million in the prior period to roughly $19.3 million (or $8.65 million in some adjusted views), showing meaningful progress toward profitability. • Adjusted EBITDA: $136.1 million with a 50% margin — a record high, reflecting disciplined cost control despite investments in growth. • Q4 2025 specifics: Revenue of ~$72 million (up ~17.6% YoY, beating estimates), though GAAP EPS came in at -$0.11 (missing some analyst expectations due to timing of expenses or one-time items). Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Amazon in talks to buy $9 billion satellite group Globalstar, of which Apple owns 20 percent appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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Thursday, April 2, 2026
Amazon in talks to buy $9 billion satellite group Globalstar, of which Apple owns 20 percent
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